Glossary
Credit Score
A credit score is a three-digit number (typically 300-850) that represents your creditworthiness based on your borrowing and repayment history. FICO and VantageScore are the two main scoring models.
Why it matters
Your credit score affects the interest rates you're offered on mortgages, auto loans, and credit cards — even a 50-point difference can mean tens of thousands in extra interest over a mortgage's lifetime. It also influences rental applications, insurance premiums, and sometimes employment decisions.
Example
A borrower with a 760 credit score might get a 6.5% mortgage rate, while a 660 score could mean 7.8% — on a $300,000 loan, that's over $90,000 more in total interest.
How Ray helps
While Ray doesn't pull your credit score directly, it monitors the financial behaviors that affect it: credit utilization, payment timing, and debt balances. Ask to check utilization across your cards.
$ ray "am I using too much of my available credit?"Related terms
FICO Score
A FICO score is the most widely used credit scoring model, created by Fair Isaac Corporation.
Debt-to-Income Ratio
Debt-to-income ratio (DTI) compares your total monthly debt payments to your gross monthly income, expressed as a percentage.
APR (Annual Percentage Rate)
APR is the yearly cost of borrowing money, expressed as a percentage.
Mortgage
A mortgage is a loan used to purchase real estate, where the property itself serves as collateral.
Credit Score
A credit score is a three-digit number (typically 300-850) that represents your creditworthiness based on your borrowing and repayment history.