What Is My Credit Score Number?

Lenders, landlords and other prospective creditors can reference your credit score to help determine if you're a credit risk. Fair, Isaac and Company --- now called FICO --- invented the credit scoring system that has become the industry standard. Five categories of information are combined and calculated to determine your FICO score, including your payment history, new credit, how much you owe, how old your credit is and how much credit you've used.

History

FICO invented the credit score in the 1950s. FICO is a California-based decision management company that analyzes data and creates models to help businesses predict consumer behavior. Other types of credit scores exist, invented by different companies, but the FICO score has become the industry's measure of choice for determining a person's credit risk. All three United States consumer credit bureaus---TransUnion, Experian and Equifax---use FICO's analytical model to calculate a credit score for every credit report they handle. Because different items may be listed on your different credit reports, you have three separate credit scores.

Creditors

Banks, credit card companies, mortgage lenders, insurance companies, employers, vehicle financing companies and landlords can look at one or more of your credit scores before doing business with you. If the prospective lender decides your score is too low, your interest rate on a loan could be higher or your loan request could be denied altogether. If an employer or landlord decides your score is too low, you could be denied a job or an apartment. Of course, your credit score might not be the sole factor a prospective creditor considers before deciding on your application.

Managing Your Score

Improving your score before applying for credit can give you more room to negotiate. Personal finance advisor Suze Orman suggests that people with scores above 760 will get the best rates, while those with scores below about 620 will pay more. Unlike your credit reports, which you're entitled to get for free once per year, you'll likely have to pay up to $15 to see your FICO score from each major credit bureau. Paying debts on time, having inaccurate credit report information removed, limiting the amount of credit you apply for and using credit wisely are ways to improve your credit score.

Warnings

Beware of television and Internet offers that promise to raise or improve your credit score for a fee. Your credit report details history, which won't change with quick-fix efforts. Credit problems have less of an effect on your credit score as time passes. Paying your bills on deadline and acquiring new credit slowly and responsibly over time are proven ways to establish better credit history and improve your credit score.