By Scott Glasgow - This lesson explains how the credit score works.
Your credit score is a three-digit number that is computed and tracked by a major credit bureau. The number is based on your credit history. It is important because lenders, employers, and prospective landlords typically access your credit score before approving you for loans, credit cards, jobs, and apartments.
FICO is the most common credit scale and ranges from 300 (worst) to 850 (best).
Excellent credit: 720 - 850. Good credit: 690 - 720. Problem credit: 650 - 690. Poor credit: 350 - 650.
Credit can impact your financial opportunities and life. Pay attention and be careful!
Next Story: How To Build Your Credit
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