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| What is a credit
score? |
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Your credit score is simply a
number. Lenders calculate your credit score using a mathematical formula based
on information taken from your credit report. Your credit score indicates how
likely you are to repay your loans. Lenders will use your credit score to
determine if you are a risk for lending money to or if you are going to be a
good creditor who will pay your bills on time and in full.
Several factors can affect your credit score:
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How long you have had credit
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How much you currently owe to creditors
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How you paid previous debts
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Your current available credit
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Number of bankruptcy, charge-offs, and collections
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