Credit scores may seem like a mysterious number to consumers, but they are really just a basic mathematical formula to determine your credit risk. With hundreds of factors affecting your score, each credit choice you make changes your score. Knowing your score can help you get more accurate loan quotes and better financial offers.

Unlike a credit report, credit scores aren't free. You can purchase the information from a reporting agency or you can go through a credit monitoring service. Most credit monitoring companies will give you your score free as part of a trial offer.

Evaluate Your Lending Risk

Do you know what type of credit you have? While most people answer with a 'good credit' or 'bad credit', a number is a more valuable tool. A score of 670 or higher qualifies you for the best rates. Lower numbers are divided into a series of categories, charging higher rates for lower scores. The national average consumer's score is 676.

Even with a low number, you can find credit. It is just a matter of how much you are willing to pay in interest charges. Shopping lenders will also help you find reasonable rates.

More Accurate Quotes

With your credit score, you can get more accurate loan quotes. A number of lending sites provide rate quotes without accessing your credit report. However, you have to provide your credit standing. When you input an accurate number, you can know that the quote you receive is more precise.

For sites that divide credit by good, fair, or bad, use 650 as the bottom end of good. Fair is usually in the 600s, while bad would count as 500 or lower.

Better Financial Offers

You can also get better financial offers when you know your credit score. Lenders specialize in different types of risk categories. So people with bad credit may find better rates with a subprime lender, rather than a traditional lender. The same is true for people with good credit.

Knowing your credit score can help you better target your lender search. However, it isn't a bad idea to start by looking at offers from all types of lenders. That way you can see what is available to you. Large down payments or cash assets can also offset your credit score, making you eligible for lower rates.