When we talk about credit scores, there are typically two significant players, FICO and VantageScore. Each uses similar factors to determine your credit score within their system.
But, what is a credit score, and what is a good credit score to have? Let’s go through all the in’s and out’s of credit and how it can affect your finances.
Let’s start by first defining what a credit score is. Essentially, a credit score is a number ranging from 300 to 850 to help lenders determine the likelihood that you’ll pay your loan back to them.
Many factors can impact your credit score. Some more than others, but each aspect is just a piece of the puzzle when lenders look at the risk level associated with lending you their money.
Keeping up with all bills, including credit cards, utility bills, cell phone bills, mortgages, and any other bills you might have, will boost your score significantly.