The basics of credit scores: how they are determined and why they matter

A higher credit score is better than a lower one

Illustration of a man painting his credit score red with a roller
Late payments will drag down your credit score
(Image credit: Rob Dobi / Getty Images)

Your credit score is a three-digit number that can play an outsize role in your financial life. Essentially, it is a numerical representation of your risk to creditors — i.e. how likely you are to repay money they lend you — based on your past financial behavior. As a rule of thumb, a higher credit score is better than a lower one, since these borrowers are viewed as more reliable.

If you want to work to improve your credit score, it helps to know what exactly goes into determining that number. While the "calculations that produce credit scores are closely kept trade secrets," said the credit bureau Experian, the "underlying factors they consider (as well as how they're weighted) are public knowledge."

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Becca Stanek, The Week US

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.