What is a credit score, and why does it matter? A credit score is a number, ranging from 350 to 850, which represents your credit history.  Lenders perceive you as a higher risk if your score is lower.  Conversely, lenders perceive you as a better risk if your credit score is higher.  Higher risk means a greater chance of loan default.  A greater risk of loan default ultimately means loans cost more money in the form of higher interest rates. Who calculates these scores, and how have they arrived at my score? The Fair Issac Corporation calculates these scores which are know as FICO scores.  Your credit score is derived directly from reports by major credit agencies, who track the amount of debt you incur, and whether you pay your debts on time.  The major credit agencies are Experian, Equifax, and Transunion. Where can I find my credit score ? You may contact Experian , Equifax , or Transunion  directly.  Or, you may apply through other sites which offer reports from all three agencies:  annualcreditreport.com or yourcreditreport.com .   There may be some cost involved. How can I improve my credit score? Monitor your credit score and your credit reports from all three credit agencies.  Check them for inaccuracies and have invalid information removed. Pay your bills on time.  Get current on all accounts and stay current. Keep credit card balances low, in relation to your credit limit. Don't apply for more credit than you need. Don't close and open credit card accounts frequently, or open too many accounts quickly.  Each inquiry can affect your score.