What is a credit score?

Generally, a credit score is a number based on a formula used to evaluate a consumer’s credit information. Usually 3 digits long, this number falls on a scale or range of possible scores. Typically, the higher the number, the better the score.

Credit scores are like grades. Based on its formula’s calculation and the information it uses, a credit score gives the user a sense of how likely it is the consumer will fail to pay back debt. Typically, the “user” will be a lender evaluating a loan application, deciding on an interest rate, or making another credit-related decision.

One key takeaway: there isn’t just one credit score. Different companies produce different scores for different purposes. And lenders are free to use any, all or none of them. Want to get a sense of where your TransUnion credit stands? See your score now with unlimited updates, included as part of TransUnion Credit Monitoring.

Disclaimer: The information posted to this site was accurate at the time it was initially published. We do not guarantee the accuracy or completeness of the information provided. The information contained in is provided for educational purposes only and does not constitute legal or financial advice. You should consult your own attorney or financial adviser regarding your particular situation.