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 Massachusetts, as in other states, a credit score is a numerical representation of an individual's creditworthiness, which is calculated based on the information in their credit report. This includes factors such as payment history, outstanding balances, length of credit history, new credit inquiries, and the types of credit accounts one holds. Credit scores are crucial as they influence the terms, interest rates, and approval for loans, credit cards, housing, and sometimes employment. While credit reports can be accessed for free annually, credit scores are not included in these reports. However, consumers can obtain their credit scores through various means, including purchasing them from the three major credit reporting agencies (Equifax, Experian, and TransUnion) or receiving them for free from some credit card issuers. It's essential for consumers to ensure the accuracy of their credit reports, as errors can negatively impact their credit scores. In Massachusetts, consumers are also protected by state and federal laws that regulate credit reporting and scoring, including the Fair Credit Reporting Act (FCRA), which sets standards for the collection, dissemination, and use of credit information.