What Is a Good Credit Score and How To Get One

A credit score is a three-digit number in a range from 300 to 850 that is determined by your credit history. Lenders use it to gauge your ability to pay back a loan.

While a "good" credit score is typically considered to be 670 and up, it's important to know that there are several different credit scores. The two main scores are the FICO score and the VantageScore, though the FICO Score is the preferred choice of most vendors. Many companies use one of these to determine creditworthiness.

FICO Factors According to the Fair Isaac Corp., the company that created the FICO credit-scoring algorithm, these are the factors that are weighed in your credit score: - Payment history: 35% - Amounts owed: 30% - Length of credit history: 15% - New credit: 10% - Credit mix: 10%

VantageScore Factors Here is the breakdown of how the VantageScore is calculated so that you can compare the two: - Payment history: 40% - Depth of credit: 21% - Utilization: 20% - Balances: 11% - Recent credit: 5% - Available credit: 3%

Factors Not Considered in Your Credit Score - Gender, race, relationship status, education, religion, sexuality, political affiliation, national origin or age - Residence - Income or job title -- though income is considered in a credit application, it does not affect your credit score - Being denied credit - Checking your credit report

Follow these steps to take control of your credit.

1. Get a copy of your credit report

2. Check your credit report for errors

3. Prioritize on-time payments

4. Don't apply for new credit unless necessary

5. Develop good financial habits

6. Keep an eye on your credit

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