What Is a Credit Score?
A credit score is a three-digit number ranging from 300 to 850 that represents your creditworthiness — how likely you are to repay borrowed money on time. Lenders, landlords, and even some employers use this number to evaluate financial risk.
The 5 Factors That Make Up Your Score
Your FICO credit score is calculated using five weighted factors:
- Payment History (35%): Whether you pay on time. This is the single most important factor.
- Credit Utilization (30%): How much of your available credit you're using. Keep it under 30%.
- Length of Credit History (15%): How long your accounts have been open.
- Credit Mix (10%): Having a variety of credit types (cards, loans, mortgage).
- New Credit (10%): Recent credit applications and hard inquiries.
Credit Score Ranges
- Exceptional (800–850): Best rates available on any loan product.
- Very Good (740–799): Above-average rates, easy approvals.
- Good (670–739): Near-prime rates, most lenders will approve.
- Fair (580–669): Subprime rates, limited options.
- Poor (300–579): Very limited access to credit.
FICO vs VantageScore
There are two main scoring models: FICO (used by 90% of top lenders) and VantageScore (used by many free credit monitoring apps). Both range 300–850 but weight factors differently. Learn more in our FICO vs VantageScore guide.
Why Your Credit Score Matters
Your score affects interest rates on mortgages, car loans, and credit cards. A 100-point improvement can save thousands of dollars over the life of a loan. It can also affect rental applications and insurance premiums.
How to Check Your Score
You're entitled to free credit reports from all three bureaus (Equifax, Experian, TransUnion) at AnnualCreditReport.com. Many banks and credit cards also offer free score monitoring.
Ready to improve your score? See how CreditRise AI analyzes your credit report and generates personalized dispute letters.