What Is a Credit Score?
Find out how credit scores are calculated and how creditors might use them to make certain lending decisions about you. 2:04
How is your credit score calculated?
A credit score is a three digit number, typically between 300 and 900, which is designed to represent your credit risk, or the likelihood you will pay your bills on time. A credit score is calculated based on the information in your credit report.
The way your credit score is calculated and the contents of your consumer file may vary between the two nationwide credit reporting agencies (Equifax® and Trans Union of Canada, Inc.). This is because not all creditors report to both agencies and there are different credit scoring models.
While most creditors do report to both, you may hold an account with a creditor that only reports to one, or a creditor that doesn’t report to any. There are many different credit scores used by lenders, including credit scores provided by the two credit reporting agencies, and credit scores that are custom built and used by a specific lender.
What is a good credit score?
Although lenders choose their own score bands for interpreting Equifax scores, this high level illustration may provide a guideline of where you stand:
- Excellent: 760-900
- Very Good: 725-759
- Good: 660-724
- Fair: 560-659
- Poor: 300-559
With Equifax CompleteTM Premier, we monitor your credit report and score to help you spot signs of fraud. And if your identity is stolen, we'll help you recover.
