Understand Credit Scores
Learn what credit scores measure, what affects them, and how they influence borrowing and financial opportunities.
What Understand Credit Scores gets you.
By the end of this upgrade, you will understand what factors make up a credit score and how each one influences your borrowing opportunities.
- Access to your current credit score from any provider
- A recent credit report, if available
- A list of your open credit accounts and their balances
Run the upgrade.
- 01
Learn what a credit score measures
Understand that a credit score estimates the likelihood you will repay debt as agreed, based on your credit history.
- 02
Learn the major scoring factors
Learn the general categories that make up most scoring models: payment history, amounts owed/utilization, length of credit history, credit mix, and new credit inquiries.
- 03
Identify which factors carry the most weight
Understand that payment history and utilization typically have the largest impact, while credit mix and new inquiries typically have smaller impact.
- 04
Review your own report against these factors
Look at your own credit report and identify which factor is currently helping or hurting your score the most.
- 05
Understand how scores affect borrowing
Learn how a higher or lower score can affect loan approval odds and the interest rate you are offered.
- You can list the main factors that make up a credit score
- You can identify which factor is weighted most heavily
- You have reviewed your own report against these factors
- You can explain how your score could affect a future loan or card application
Revisit when
- Your score changes unexpectedly
- You plan to apply for a loan or credit card
- A new account or missed payment appears on your report