Your credit score is a numerical summary of your credit report. Since it's a number, creditors and lenders can easily assess your credit risk to make a decision about extending a loan or credit card to you. Credit scores range from 300 - 850.

Consumers with higher credit scores are considered to be less risky borrowers than those with lower credit scores. Higher credit scores allow you to get lower interest rates on credit cards and loans, lowering the cost of having credit. Consumers with low credit scores usually have higher interest rates and might be denied for some credit cards, loans, and other credit-based services.

There are many different methods of credit scoring and some lenders even have their own credit score. The most widely used version of the credit score is the FICO score, named for Fair Isaac Corporation, the company credited with developing the score.

All three major credit bureaus have their own version of the FICO score. Equifax uses the Beacon system, Experian uses the Experian/Fair Isaac system, and TransUnion uses the Empirica system. Even though the systems are different, each produces comparable scores.

Credit scores aren't included in the free annual credit report benefit enforced by the FCRA. Instead, you must purchase your credit report from the credit bureau issuing your credit report or from myFICO.com, a Fair Isaac division.