When your creditor receives your credit report, it usually comes with a score.

Additionally, many creditors have a method to take the information from your credit report and your credit application and translate that into their own numerical score.

Credit scoring is the scientific process where a mathematical model determines a consumer's credit risk by comparing information about one consumer to the credit performance of many others with similar credit profiles.

What Is a Good Score to Get?

Scores normally fall between 500 and 850, but the great majority of scores are in the 600s and 700s. The higher the score, the less risk there is for the creditor, so a score of 750 may qualify you for a better rate than a score of 625.

The math is simple: The higher the score, the better your credit rating.

How a Score Breaks Down

Your credit score from a credit bureau (also known as your FICO score) is based on five factors Here is how much each factor contributes to the overall score:

• Payment history - 35%
• Current total debt - 30%
• Requests for new credit - 10%
• Types of credit in use - 10%
• Length of credit history - 15%