Credit Scores Explained May 2026

A credit score is a three-digit number, typically ranging from , that summarizes your creditworthiness. It acts as a "financial report card," telling lenders how likely you are to repay debt on time. 1. How Credit Scores Are Calculated

Higher scores suggest you are a lower risk to lenders, often leading to better interest rates and loan terms. While ranges vary by model, a general breakdown includes: : Exceptional 740–799 : Very Good 670–739 : Good 580–669 : Fair 300–579 : Poor 3. The Three Major Bureaus A guide to understanding your credit score credit scores explained

Most scoring models, like , use five key factors from your credit history: A credit score is a three-digit number, typically

: Having a variety of account types, such as credit cards and installment loans (car loans or mortgages), can improve your score. How Credit Scores Are Calculated Higher scores suggest

: Opening too many new accounts in a short period can be seen as a "red flag" by lenders. 2. Credit Score Ranges

: The age of your oldest and newest accounts. Longer histories generally result in higher scores.