Your credit score give lenders an idea of how risky of an investment you are. Do you pay your bills on time or do you have a lot of outstanding debt that you’re not paying off? Your three-digit number comes from your credit report and is calculated using 5 categories:
1) Payment history (35%)
2) Amounts owed (30%)
3) Length of credit history (15%)
4) Types of credit history (15%)
5) New credit (10%)
Disclaimer: Past performance is no guarantee of future results. All investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.