Updated: Jan 31, 2023
Learning how to establish and maintain good credit will help you achieve future financial goals, which may include getting a credit card or buying a car or home.
Your credit report contains four important areas of information:
A credit score is a number based on a snapshot of your credit report that helps a lender determine your ability to pay back debt (your score = your credit risk). Fair Isaac's FICO® score is widely used and is based on the following factors:
The subjective descriptions below such as Excellent, Very Good, Fair, etc. are for illustrative purposes only. While having a higher credit score signals a lower credit risk to potential lenders, loan decisions tend to be based on many other factors besides just a credit score.
FICO® is a registered trademark of Fair Isaac Corporation and is not affiliated with Discover® Student Loans.