What is a credit score? (article) | Khan Academy (2024)
Learn about credit scores, why they are important, and the effects they can have on your finances.
Want to join the conversation?
Log in
MikeMike
8 months agoPosted 8 months ago. Direct link to MikeMike's post “Does checking your credit...”
Does checking your credit score affect ur credit score?
•
(9 votes)
David Alexander
8 months agoPosted 8 months ago. Direct link to David Alexander's post “It shouldn't. Be aware, ...”
It shouldn't. Be aware, though, that you only get a certain number of free checks every month or quarter. After that, you start to get charged for them.
(9 votes)
JOANCE211
a year agoPosted a year ago. Direct link to JOANCE211's post “the fastest way to grow m...”
the fastest way to grow my credit without a credit card.
•
(6 votes)
David Alexander
a year agoPosted a year ago. Direct link to David Alexander's post “You could take a personal...”
You could take a personal loan from the bank and pay it back on time and in full. You could have some work done on your house and, on a credit basis with the contractor, pay off the bill over a period of months. Both of these would grow your credit, but neither would likely give you a credit score.
7 months agoPosted 7 months ago. Direct link to Shamil's post “How do I keep my score co...”
How do I keep my score consistently 850?. I know for a fact that having a score above 700 is already really good from reaading other questions and answers. However, I am a Muslim (A follower of the religion of Islam) and in my religion we should not pay any kind of interest because it is considered bad and it is a sin to do that.
•
(5 votes)
David Alexander
7 months agoPosted 7 months ago. Direct link to David Alexander's post “Look into Islamic banking...”
Look into Islamic banking, which helps people manage resources in ways consistent with Islam. Whatever an Islamic bank offers by way of a substitute for credit cards will serve you well and keep you Halal.
(12 votes)
Tea
5 months agoPosted 5 months ago. Direct link to Tea's post “Hi! I'm 16 and I am going...”
Hi! I'm 16 and I am going to start paying for my own gas soon. Are there any ways that I can start building my credit score now?
•
(5 votes)
David Alexander
5 months agoPosted 5 months ago. Direct link to David Alexander's post “You build up your credit ...”
You build up your credit score by doing the things that imply that you are trustworthy. If you have a job, you stick with it. If you have a credit card, you make your payments on time. Stuff like that.
(8 votes)
Sam
10 months agoPosted 10 months ago. Direct link to Sam's post “Will looking at your cred...”
Will looking at your credit score ever impact your score?
•
(4 votes)
David Alexander
10 months agoPosted 10 months ago. Direct link to David Alexander's post “Look all you like. Be awa...”
Look all you like. Be aware, though, that after the first few looks, they start to cost money. Stay within the limit of "free reports per month" or "per quarter".
(8 votes)
𝚡.𝚊𝚜𝚙𝚎𝚛
6 months agoPosted 6 months ago. Direct link to 𝚡.𝚊𝚜𝚙𝚎𝚛's post “I understand so far that ...”
I understand so far that not paying important bills like rent, utilities, or loans can negatively affect your credit score, but what about smaller, less important bills, like Netflix or a gaming service? Do those bills also affect your score in as much a negative way, or is it proportionate to the bill size?
•
(4 votes)
David Alexander
6 months agoPosted 6 months ago. Direct link to David Alexander's post “If your netflix account i...”
If your netflix account is in your name and paid by some sort of electronic transfer of funds, the record becomes part of what goes into your credit score. If, however, you're using your cousin's account and paying him cash every month, it's good for his score, but does nothing for or against you. So, how are you identified to the gaming service, and how do you transfer funds. If tracing the number gets back to you, then the record of payment is part of what goes into computing your score.
(3 votes)
EmJ
2 months agoPosted 2 months ago. Direct link to EmJ's post “Do credit scores change d...”
Do credit scores change depending on different countries? Or is it the same everywhere?
•
(3 votes)
David Alexander
2 months agoPosted 2 months ago. Direct link to David Alexander's post “Different countries use d...”
Different countries use different systems. The one you are seeing in this course is common in the USA. If, for example, you want to know the parallel system in Syria, Zimbabwe, Kiribati or Luxembourg, you'll have to ask there.
(5 votes)
Latray Boldin
a year agoPosted a year ago. Direct link to Latray Boldin's post “my question is how do peo...”
my question is how do people maintain their credits from starting off small and making their way up to a better one?
•
(4 votes)
Chris is Cool
a year agoPosted a year ago. Direct link to Chris is Cool's post “Im pretty sure if they ju...”
Im pretty sure if they just pay their loans, mortgages , cars and the such, on time and they do that consistently it will raise their credit.
(3 votes)
Atanas Lambov
10 months agoPosted 10 months ago. Direct link to Atanas Lambov's post “Does the information prov...”
Does the information provided here apply to USA only?
•
(3 votes)
David Alexander
10 months agoPosted 10 months ago. Direct link to David Alexander's post “This is very likely true,...”
This is very likely true, though any nation where a modern credit-based economy will have something very similar.
(4 votes)
MatthewS
10 months agoPosted 10 months ago. Direct link to MatthewS's post “how do i start growing my...”
how do i start growing my credit score
•
(2 votes)
David Alexander
10 months agoPosted 10 months ago. Direct link to David Alexander's post “You begin growing your cr...”
You begin growing your credit score by getting a credit card, even an expensive one, and using it, BUT, be sure that you don't make any late payments, and see to it that you don't pay everything off as early as possible. Demonstrate that you can responsibly take care of what you have borrowed and pay it back on time.
A credit score is a number that helps lenders, like banks and credit card companies, decide whether to lend you money. It's important because the higher your credit score, the easier it will be for you to get approved for loans and credit cards.
A credit score is a three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time. Creditors and lenders consider your credit scores as one factor when deciding whether to approve you for a new account.
A credit score is usually a three-digit number that lenders use to help them decide whether you get a mortgage, a credit card or some other line of credit, and the interest rate you are charged for this credit. The score is a picture of you as a credit risk to the lender at the time of your application.
Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
A credit score is based on your credit history, which includes information like the number accounts, total levels of debt, repayment history, and other factors. Lenders use credit scores to evaluate your credit worthiness, or the likelihood that you will repay loans in a timely manner.
Maxing out your credit cards will typically lower your credit score. Your payment history and your amount of debt has the largest impact on your credit score. It's most important that you regularly check your reports, dispute inaccurate information, and consistently make your payments on time.
You have the right to request one free copy of your credit report each year from each of the three major consumer reporting companies (Equifax, Experian and TransUnion) by visiting AnnualCreditReport.com. You may also be able to view free reports more frequently online.
Making on-time payments to creditors, keeping your credit utilization low, having a long credit history, maintaining a good mix of credit types, and occasionally applying for new credit lines are the factors that can get you into the 800 credit score club.
A FICO score is a three-digit number, typically on a 300 to 850 range, that tells lenders how likely a consumer is to repay borrowed money based on their credit history. FICO also offers industry-specific scores for credit cards and car loans, which range from 250 to 900.
Credit can be a powerful tool in achieving important financial goals. It allows you to make large purchases (such as a home or a dental practice) that you otherwise would not be able to afford if you were paying in cash.
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U.S. reached 714.
Highlights: While older models of credit scores used to go as high as 900, you can no longer achieve a 900 credit score. The highest score you can receive today is 850. Anything above 800 is considered an excellent credit score.
Credit Score. - a numerical rating based on credit report information; represents a person's level of credit worthiness; heavily influences your approval for bank loans and credit cards.
As someone with a 650 credit score, you are firmly in the “fair” territory of credit. You can usually qualify for financial products like a mortgage or car loan, but you will likely pay higher interest rates than someone with a better credit score. The "good" credit range starts at 690.
Introduction: My name is Jeremiah Abshire, I am a outstanding, kind, clever, hilarious, curious, hilarious, outstanding person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
