How Is Your Credit Score Calculated and Why Is It Important?

How Is Your Credit Score Calculated and Why Is It Important?
Credit score. Kolonko/Shutterstock
The Associated Press
Updated:

You know credit scores exist. You might even know what yours is. But do you know how it’s calculated and why it’s important?

Your credit score affects whether you can get a credit card, rent an apartment, buy a house, start a business, or even get a cell phone contract.