Whether you’re looking to buy a home or car, take out a loan, open a credit card account, or even purchase a new auto insurance policy, your credit score will likely come into play. This three-digit number is calculated based on a variety of financial factors, and can influence whether a lender or creditor is willing to work with you.

The start of a new year is always an exciting time. After the holiday season has wound down, the presents have been put away, and the last of the extended family has gone home, many of us are left reflecting on what the past year brought and what we hope to get out of the year to come.

Traditional banking institutions have been around for centuries, giving consumers a place to safely store their money, conduct business, and take out loans and other financial products. These institutions can include local banks, credit unions, or national chains.

There are many instances in life when your credit health gets examined. For better or worse, your credit score (and even credit history) can play a huge factor in achieving many of life’s goals.

It’s no secret that your credit history and score play an important role in your financial life. Your credit can both open doors for you and close them, depending on whether or not you have built a strong history over the years.

In collaboration with Money Lion - These days, consumers have relatively easy access to their credit scores thanks to a wealth of online services. Knowing your credit score is important, because it sets expectations for the type of financial products (e.g., credit cards, loans) that you’ll be best suited to apply for, and it factors into other important life needs (e.g., finding a job, buying/renting a home).

Credit scores can seem like a mystery, but they’re actually quite simple. When it comes to loans, any kind of borrowing involves a lender checking the applicant’s credit score. How the score affects a loan’s interest rate and terms depends on a number of factors. Below is a breakdown of the credit score spectrum and the advantages and disadvantages of different scores. Knowing where your score lies can help when seeking out a loan, to ensure you are getting the best offers available.

The strength of a person’s credit score can be their ticket to securing a personal loan with a competitive interest rate. The way these scores are calculated is changing, however, as consumer behavior continues to be looked at through a broader lense. Specifically, FICO has updated its industry-leading FICO Score to better reflect these changes, providing lenders with the most comprehensive data available.