A credit score is a numerical rating of your creditworthiness — how likely you are to repay borrowed money based on your past financial behavior. Lenders use it when deciding whether to approve credit applications and what interest rate to offer. In the US, credit reports are compiled by three nationwide consumer reporting agencies — Equifax, Experian and TransUnion — and scores are calculated from that data using models built by FICO and VantageScore.
How credit scores work in the US
The two dominant scoring models, FICO and VantageScore, both use a range of 300 to 850 for their general-purpose consumer scores. Higher scores indicate lower credit risk. But there is no single US credit score: FICO alone publishes many versions plus industry-specific scores for auto and bankcard lending, and your score differs between the three bureaus because each holds slightly different data about you.
Lenders typically pull your report and score from one or more of the three bureaus when you apply. Different lenders pull from different bureaus, use different score versions, and apply their own internal criteria on top — which is why the same person can be approved by one lender and declined by another in the same week.
What your credit score is used for
- Mortgage applications
- Credit card and loan applications
- Car finance
- Rental applications — landlords and property managers routinely check credit
- Some employers check credit for roles involving financial responsibility, subject to FCRA rules and state restrictions
- Insurance pricing in most states, through a separate credit-based insurance score
- Cell phone contracts
- Utility accounts
A good score vs a poor score
On the common 300 to 850 scale, scores are usually grouped into broad bands: roughly 300 to 579 poor, 580 to 669 fair, 670 to 739 good, 740 to 799 very good, and 800 and above exceptional. The exact cutoffs differ between FICO and VantageScore and between lenders. A score in the lower bands may mean declined applications, higher interest rates, larger deposits or limited product choice. Having no credit history at all — being credit invisible — can be as much of a barrier as a low score.
How credit scores differ from credit reports
Your credit report is the underlying data — the full record of your credit accounts, payment history, balances, inquiries and any bankruptcy filings. Your credit score is a number calculated from that data by a scoring model. Both are useful: the score gives a quick summary, while the report shows exactly what is driving it. Note that the free reports you are entitled to under federal law are reports, not scores — scores are provided separately, often free through card issuers and services such as Credit Karma.
General guidance only — not regulated financial advice.