Frequently Asked Questions about Credit Scores

The answers to the most commonly asked questions about credit scores are included below.

What is a credit score?

A credit score is a numerical indication of the risk a borrower represents to a lender. Higher scores are associated with borrowers who pose less of a risk of default, while borrowers with low scores tend to pose more risk. Credit bureaus calculate consumers' credit scores using the payment history information contained on their credit reports. Lenders use credit scores as one factor in determining whether to issue loans to borrowers.

How is my credit score calculated?

The most popular computation method for credit scores relies on the FICO (Fair Isaac Corporation) formula. This formula involves a complex algorithm that takes into account many variables from consumer credit reports, such as payment history, levels of debt, average account age, etc. Every credit bureau calculates credit scores in different ways, but credit scores do not usually differ more than 50-100 points among the three main credit reporting bureaus.

Can I get a free credit report on this site?

Yes, in addition to helping you answer the question what is a credit score, we can assist you in obtaining a complimentary credit report. If you would like your free report, just fill out our brief questionnaire to sign up with us. Once we have your information, we can send you a copy of your report.

How much does it cost to obtain my credit score?

Though you can obtain your credit report for free, you will typically need to pay a small fee in order to view your credit score. How much you pay to view your score will depend on the bureau or company from which you request the service. Most companies charge $15-$40 for consumers to see their scores. This fee also includes a specialized report that explains the meaning of your credit score and how the bureau arrived at that number.

Who can view my credit score?

Any time you apply for a loan or a line of credit, your lender can pull your credit score in evaluating your application. Your current lenders also have the right to pull your credit score periodically to determine your interest rates. Additionally, insurance companies can view your credit score when you apply for coverage or once you become a customer. Your score will help the insurer set your premiums. Finally, when you apply for a job, an employer can pull your credit score if you sign a document giving them that right. Employers sometimes use credit information in judging a job candidate's suitability for hire.