What qualifies as a good credit score? The highest FICO score you can receive is 850. The optimal score range is between 720 and 850, with anything over 750 considered excellent credit, and scores from ranging 660 to 749 considered good credit. If your score is below 660 you may have trouble getting prime rates and terms on money borrowed, and if below 620, it may be very difficult to get credit at all.

Five major factors are used to calculate your FICO score:

• 35% percent of your credit score is based on your payment history. Late payments are reported to the credit bureaus and can lower your score dramatically.
  
• 30% of your score is based on your total debt. Comparing the ratio of revolving debt, like credit card balances, to available revolving credit, such as your credit limit.
  
• 15% of your credit score is based on the length of your credit history.
  
• 10% is based on the kinds of credit you use. Some kinds are weighted more heavily.
  
• 10% of your FICO score is determined by how much credit you have used recently.

Money owed due to a court judgments or tax lien can also have a negative effect on your credit score. Incurring too many recent credit checks (also called inquiries) can also lower your score.

The three major credit reporting bureaus: Equifax, Experian, and TransUnion all calculate your score differently. It is important to get a credit report from each bureau to get an accurate picture of your credit.

U.S. residents may request a free copy of their report from each agency once a year. You can do this through through the Internet by visiting:

http://www.annualcreditreport.com/

Or you can buy your credit report with credit score at: http://www.experian.com/, http://www.transunion.com/, or http://www.equifax.com/