Your credit score is the result of a complex calculation that tells potential creditors whether you’re likely to repay your debts based on how you’ve managed your finances in the past. It can range anywhere from 350-850. Basically, the higher your score, the less risk you pose for potential lenders. As a student, you may not have a credit file established yet, but understanding the information below will help you build a good credit record from the start.

In general, here’s how it breaks down:

Lenders see you as a moderate to low risk and are more likely to give you a competitive interest rate on loans they provide.

Lenders consider you to be a fair to good risk, but interest rates on the loans provided will probably be higher. You should work to improve your score by paying your bills on time and reducing your outstanding debt.

Lenders may be very wary about extending loans or credit to you if you fall into this high-risk range, so improving your score should be a priority.

There are five things that make up your credit score, and they are each weighted differently in the calculation. 

Test your skill and learn more about the anatomy of a credit score.