From Yahoo Finance: 2025-05-23 11:15:00

Credit scores can be confusing, but they’re not calculated using simple math. They involve algorithms that consider your credit history length, debt, and more. Understanding these scores is key to financial health.

Your credit score is like a grade for your credit history. It reflects whether your history is positive or negative. Just like comparing grades in school, credit scores help lenders evaluate your creditworthiness.

Multiple credit scores exist for each person, and they can vary day to day. Factors like the scoring company, algorithm, credit report, and scoring range all contribute to these variations.

Credit scores are based on specific categories in your credit reports. Focusing on categories with more weight can help you build better credit.

Improving credit scores requires understanding what is included in calculations. Nondebt accounts and buy now, pay later loans have different impacts on credit scores.

Credit scores are recalculated monthly, but updates may vary. Lenders report account information to credit bureaus at different times, affecting score changes. Tracking your scores can help you stay informed about your credit health.



Read more at Yahoo Finance: How are credit scores calculated?