Definition
A number that represents your credit health based on your history. Higher scores mean better credit and can help you secure lower interest rates.
What to consider
- Check your score regularly to gauge your financial health.
- Small improvements can lead to better loan terms.
- Focus on on-time payments and keeping balances low.
Real world scenarios
- Jasmine monitors her FICO and VantageScore each month, noticing gradual improvements as she pays down debt.
- After always paying in full, Ed sees his credit score jump above 750. This high rating unlocks better auto loan rates.
- Leila aims to raise her score by limiting new inquiries and keeping her oldest credit accounts active.
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