Your credit scores are numbers that creditors, landlords, employers, insurers, and others use as shorthand or an educated guess to determine your attitude toward borrowing and how you might repay a loan. Credit scores are calculated individually by the three major credit reporting bureaus, Equifax, Experian, and TransUnion, from the information found in your credit reports:

• Liens, child support obligations, etc. reveal your litigation history.
• Payment history shows which accounts you have and how you pay your debts.
• Outstanding balances show how much credit needs to be repaid. Do you make minimum payments, pay a large part of the balance, or pay in full?
• Length of credit history is composed of the original dates you opened accounts or obtained loans.
• Applications for new credit accounts show you plan to owe more. What are you spending your money on?
• Types of credit accounts differentiate between secured loans (cars, homes) and unsecured loans (credit cards).

High credit scores mean better terms and interest rates, improved access to jobs and housing, and lower insurance costs, among other benefits.