The information from your credit report is used to calculate your CREDIT SCORE. Your credit score is calculated based on the information in your credit report. Think of it as a grade.  The purpose is to give lenders a means to instantly determine your creditworthiness by simply looking at your credit score.


It’s like a monthly Report Card Grade on how you’ve handled your finances in life. It tells potential lenders how good of a “student” you are at paying bills and helps them determine if they should take a chance on you repaying funds to them.


There are many different scoring models that calculate your credit score. So you may see a different score depending on where you obtain a copy of your credit score. The most commonly used score is the FICO scoring model, developed by Fair Isaac Corporation.


The important thing to know is that while your score may be different depending on who is calculating it, they all follow one rule: The higher the score the better.  


What is considered “high” or “good” credit differs between the different scoring models.  

Here is a general guide:

Bad Credit – 300- 619
Fair Credit – 620 – 689
Good Credit – 690 – 720
Excellent Credit – 720 & up

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