Your credit score is a number generated by a mathematical algorithm -- a formula -- based on information in your credit report, compared to information on tens of millions of other people. The resulting number is a highly accurate prediction of how likely you are to pay your bills.
The higher the number, the better you look to lenders. People with the highest scores get the lowest interest rates.
Scoring categories:
The scale runs from 300 to 850. The vast majority of people will have scores between 600 and 800. A score of 720 or higher will get you the most favorable interest rates on a mortgage, according to data from Fair Isaac Corp., a California-based company that developed the credit score. (Its own score is called the FICO score.)720+ - Above Average
680 - 719 - Average
620 - 679 - Fair
Below 620 - Below Average
For more information on credit scores, see "Understanding Your Credit Scores" in the Resources section of the Northlawn Website.
