Credit score
A credit score is a numerical index which represents an estimate of an individual's financial creditworthiness. Lenders, such as credit card companies, use credit scores to determine credit limits and interest rates.
One of the best-known credit scores in the United States is the FICO score, calculated using mathematical formulae developed by the Fair Isaac Corporation. The three major American credit-report agencies-- Equifax, Experian, and Trans Union-- all use variations on this scoring formula under different names.
In accordance with the Freedom of Information Act (FOIA), people can access their credit scores if they wish, and many online services exist whereby people can check their scores over the Internet.
Credit scores measure punctuality of payment, risk of bankruptcy based upon prior record, and length of credit history.
Credit scores exhibit a right-skewed distribution with a median around 725 and a maximum of 820. A score above 700 is considered to be "good credit", and a score below 600 is considered to be poor.
