What is a Credit Score?
Credit scores are used to predict whether consumers will be a high, medium, or low risk when lenders offer a product or service and can affect the rate of interest charged by lenders. Credit scores are created based on the content contained in consumers’ credit reports. Key factors that impact a score are: • Number of active accounts • Types of credit accounts maintained • Amount of available credit • Length of credit history • Payment history Consumers should regularly review their credit reports to ensure accuracy and completeness. A free annual copy of consumers’ Equifax, Experian, and TransUnion credit reports are available at www.annualcreditreport.com.