Credit Basics

Credit Basics

What Is a Credit Score?

A credit score is a three-digit number that represents your creditworthiness. Lenders use it to decide whether to approve loans, credit cards, and other financial products.

  • Range: Usually between 300–850.

  • Higher scores = lower lending risk.

What Is a Credit Report?

A credit report is a detailed record of your credit history, maintained by the three major credit bureaus:

  • Experian

  • Equifax

  • TransUnion

It includes:

  • Payment history

  • Credit accounts (open & closed)

  • Credit inquiries

  • Public records (bankruptcies, judgments)

Why Credit Matters

  • Better Loan Approval Chances

  • Lower Interest Rates

  • Higher Credit Limits

  • More Financial Opportunities

    • Related Articles

    • Credit Reports

      1. What is a Credit Report? A credit report is a detailed record of your credit history, maintained by Experian, Equifax, and TransUnion. Includes: Personal information (name, SSN, addresses) Credit accounts (loans, credit cards) Payment history ...

    • Credit Scores

      1. What is a Credit Score? A credit score is a three-digit number that reflects your creditworthiness. CreditVana uses the VantageScore® model (300–850 range). Higher scores = lower credit risk for lenders. 2. Score Ranges 300–579 → Poor 580–669 → ...

    • Improving Credit

      Steps to Improve Your Credit Score Pay Bills on Time Payment history makes up ~35% of your score. Set up reminders or automatic payments. Keep Credit Utilization Low Ideally, use less than 30% of your available credit. Example: If your limit is ...

    • Credit FAQs

      Why are my credit scores different across bureaus? Each bureau (Experian, Equifax, TransUnion) collects data independently. Some lenders report to all three, while others report to only one or two. This results in slight differences in your scores. ...

    • Credit Monitoring & Alerts

      Overview: Credit monitoring keeps users informed about any changes in their credit profile. Alerts notify them instantly about potential risks such as identity theft, new inquiries, or significant score changes. What are Alerts? Alerts are real-time ...