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What Is a Credit Score?

Back in the 1950s, a company called Fair Isaac Corporation created a modeling method to predict consumer payment behavior. As a result, the credit score was born. A credit score is a three-digit number ranging from 300 to 850 that summarizes your risk of default. A credit score is a key component used in most credit reviews performed today.

There are two main types of credit scores: FICO and VantageScore. In addition, there are a number of proprietary credit scoring models, like NextGen, BEACON, and EMPIRICA. In almost every case your credit-worthiness will be evaluated using a credit score calculated by FICO or VantageScore.

> What Affects Your Credit Score?