A credit score is a number that rates your credit risk. It can help creditors determine whether to give you credit, decide the terms they offer, or the interest rate you pay. Having a high score can benefit you in many ways. It can make it easier for you to get a loan, rent an apartment, or lower your insurance rate.

The information in your credit report is used to calculate your credit score. It's based on your:

• Payment history

• Outstanding balances

• Length of credit history

• Applications for new credit accounts

• Types of credit accounts (mortgages, car loans, credit cards)

It's important to make sure your credit report is accurate, so your credit score can be too. You can have multiple credit scores. They're not calculated by the same credit reporting agencies that maintain your credit reports. Instead, they're created by different companies or lenders that use their own credit scoring system.

Your free annual credit report does not include your credit score, but you can get your credit score from several sources. Your credit card company may give it to you for free. You could also buy it from one of the three major credit reporting agencies. When you receive your score, you often get information on how you can improve it.

In Illinois, as in other states, a credit score is a numerical representation of an individual's creditworthiness, which is used by creditors to make decisions about lending, credit terms, and interest rates. A higher credit score can lead to more favorable credit terms. Credit scores are calculated based on factors such as payment history, outstanding balances, length of credit history, new credit inquiries, and the types of credit accounts one holds. It is crucial to ensure the accuracy of one's credit report, as it influences the credit score. Credit scores are distinct from credit reports and are not included in the free annual credit report that consumers are entitled to under federal law. However, individuals can obtain their credit scores through various means, including for free from some credit card companies or for a fee from the three major credit reporting agencies. Illinois residents are subject to the same federal regulations regarding credit reporting and scoring, such as the Fair Credit Reporting Act (FCRA), which governs the collection and use of credit information.