RISE gives you the tools to get you there
Free Tools to Build Your Credit
You can’t improve your credit without first knowing where you’re at and where you need to go. Which means before anything else, take the time to check your score and get credit alerts today. It’s free with Credit Score Plus!
Don’t understand all of these terms? That’s okay! Check out our Financial Terms Glossary for more information.
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Your Questions Answered
Simply put, your credit score is the number used to predict how likely you are to pay back a loan and whether you will pay on time. Your credit score starts with the information about you from your credit report. A mathematical formula – called a scoring model – is then used to create your credit score.
Credit scores are used by companies to make decisions such as whether to approve a mortgage at a certain rate or issue a credit card. Different lenders use different scoring formulas, so your score can vary. Usually a higher score makes it easier to qualify for a loan and may result in a better interest rate. Most scores range from 300-850.
Remember: It’s just a score. It doesn’t define you. And credit scores can change. Lenders use a wide variety of scoring models and data to determine your likelihood to pay back your loan on time. But one thing is constant – the better your credit score, the better interest rates you will receive. So your goal, no matter your score, should be to get it as high as you can by paying on-time if possible.