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 New Jersey, as in other states, a credit score is a numerical representation of an individual's creditworthiness, which is calculated based on the information contained in their credit report. This includes factors such as payment history, outstanding debt, length of credit history, new credit inquiries, and the types of credit accounts held. Credit scores are used by creditors to make decisions about extending credit, setting interest rates, and offering terms for loans. While consumers are entitled to one free credit report from each of the three major credit reporting agencies annually, this report does not include the credit score. Consumers can obtain their credit score through various means, such as purchasing it from the credit reporting agencies or receiving it for free from some credit card companies. It is crucial for individuals to ensure the accuracy of their credit reports, as this affects their credit scores and, consequently, their ability to secure credit, favorable loan terms, and lower insurance rates. Different companies or lenders may use their own credit scoring systems, which means an individual can have multiple credit scores.