Credit Scores and Credit Rating

Your credit score may seem like a "magic number", but all it really is, is a numerical summary of your credit risk. This three-digit number gives prospective lenders a portrait of your credit history and financial situation, and it can be a deciding factor in whether or not you are granted credit. If you get approved by a lender, your credit score will also affect the terms and conditions of the credit card or loan.

Your personal credit score is figured using the information in your credit report, which can include both current and past accounts, and other records like bankruptcy filings and liens against you. In your application for credit, a lender will consider your score, your income, and the length of time you've been at your current job.

Your credit report contains personal identifiers like your name, social security number, birthdate, and employer information. There are some other things included that have no bearing on your credit score, like your sex, age, marital status, and religion.

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