A credit score is a three digit number that is used to represent the level of financial responsibility if a person and is determined through an analysis of a person’s credit file. There are many different credit scores with different ranges that use different formulas. People with higher credit score will be offered larger loans and credit limits at lower rates, whereas people with lower scores will have a more difficult time borrowing money. The best known credit score to date is the FICO score which ranges between 300 and 850. Factors that are used to determine FICO credit scores include payment history, total amounts owed, credit history length, new credit accounts, and types of credit being used.
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