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 North Carolina, 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 using data from credit reports, which include details on payment history, credit utilization, length of credit history, new credit inquiries, and types of credit accounts. It is crucial for consumers to ensure the accuracy of their credit reports, as errors can negatively impact their credit scores. While consumers are entitled to one free credit report annually from each of the three major credit reporting agencies—Equifax, Experian, and TransUnion—through AnnualCreditReport.com, this free report does not include the credit score itself. Credit scores can be obtained from various sources, including credit card companies (often for free) or for purchase directly from the credit reporting agencies. Different companies may use different scoring models, which can result in multiple credit scores for an individual.