Credit Score

Credit Score

Credit score is a three-digit number that represents the creditworthiness of an individual. Your scores include your history of borrowing and paying back money, how often you make your payments on time, and how many accounts you have in good standing. Banks and lenders use it to decide whether they’ll approve you for a credit card or loan.

How do you figure out your score?

  • Most major credit card companies report your score on your statement
  • Credit Karma (VantageScore for TU and EQ)
  • CreditScorecard (FICO EX from Discover)

There are two types of credit scores, the FICO & VantageScore. Their range are:


Factors That Determine Your Score

  1. Credit Utilization
    This is how much credit you’re using compared to your total limit. Let’s say you have 3 cards with limits of $2K, $5K, and $10K. You have a balance of $300 on each card. You utilization would be 5%. 
  2. Payment History
    Percentage of payments you’ve made on time.
  3. Derogatory Marks
    Collection, bankruptcies, or civil judgments on your report.
  4. Average Age of Accounts/Loans
    How long you’ve had the accounts opened.
  5. Total Accounts
    This includes the number your open and closed accounts.
  6. Inquiries
    The number of times you’ve appied for credit/loans.