What’s a credit score and why is it important?

A credit score—sometimes referred to as your FICO score—is a widely used calculation of various factors concerning your credit history and current credit accounts. Financial institutions and other companies use your credit score to determine whether you’re someone who is responsible with your money (which includes meeting the terms of your credit card agreement). Credit scores range from about 350 to 800. A low score indicates poor credit history and makes someone a high risk for credit. A high score, which indicates a good credit history, can give you many advantages, including better interest rates and higher credit limits on things like credit cards, mortgages and other types of loans such as a new car loan. It also lets landlords know that they can trust you to pay your rent on time each month.