Credit Score
A credit score is a three-digit number, typically between 300 and 850, that summarizes your credit history into a single risk indicator. Lenders use it to decide whether to extend credit and at what rate. The two main scoring models are FICO (used by most lenders) and VantageScore (used by some online lenders and credit monitoring tools).
Credit scores are calculated from data on your credit report: your payment history, current debts, length of credit history, types of credit, and recent applications. Different scoring models weight these factors slightly differently, but all produce a number meant to predict the likelihood of default in the next 24 months.
The FICO ranges
The standard FICO ranges:
- 300-579: Poor
- 580-669: Fair
- 670-739: Good
- 740-799: Very Good
- 800-850: Exceptional
Lenders set their own cutoffs within these ranges. Most prime lenders require 670+ for unsecured personal loans; subprime lenders work with scores down to 500 or below.
What affects your score most
The five FICO factors and their approximate weights:
- Payment history (35%): paying on time matters more than anything else
- Credit utilization (30%): how much of your available credit you’re using
- Length of credit history (15%): older accounts are better
- Credit mix (10%): having different account types (cards + loans) helps slightly
- New credit (10%): recent applications drop scores temporarily
The first two account for two-thirds of your score. If you focus on paying on time and keeping credit card balances low, you’re addressing the biggest levers.