Credit scoring formulas take into account that people need to compare rates and loan terms before they buy a large item, such as a home or car. So you can shop around for car and mortgage loans, but you need to do so during a short period of time, such as a month.

What is a good score? A bad one?

There is not a “set” good credit score. This is part of the mystery of credit scoring. Each credit agency calculates your score differently. And each lender evaluates your score differently. But you’ll find that a score of about 660 or above is considered a good score. That means lenders will consider offering you some of their lower, or prime, rates.

Scores lower than 660 are considered sub-prime. Lenders will offer you higher rates at those scores. You’ll need to shop around for the best rate.