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A credit score is a numerical rating placed on your credit report. This number is used by banks, mortgage companies, credit card issuers, and anyone who is considering lending you money or extending credit privileges to you to determine if you are considered “credit worthy”.
The number ranges from 300 (the very lowest you can get) to 850. It may be possible to go above 850; however, if your credit score reaches that level, the figuring usually stops there.
When credit rating entities figure your credit score, they consider a number of factors. A percentage amount is assigned to certain areas of your credit and payment history, but other things such as how often you pay on time (or not) and your account history, as well as other information, is also studied and assigned numerical values. Performing various math functions using a standard formula gives your credit score.
Your credit score can give you the opportunity to make a large loan, such as for a house or car payment, or may not allow you to even be accepted for a standard credit card. For these and other reasons, it is important that you make sure your credit score is as good as it can be.