Your credit score is a three‑digit number—typically between 300 and 850—that represents your creditworthiness and guides lenders in deciding whether to extend credit to you, and at what terms. Higher scores generally unlock better loan rates, bigger credit limits, and stronger approvals.
Two main models are used in the U.S.: FICO and VantageScore, both ranging from 300 to 850. Your score is based on data from your credit report, including factors like payment history, debt levels, account ages, types of credit, and recent applications.
Credit scores are typically grouped into tiers:
A score of 670 and above is generally seen as favorable by most lenders, with excellent opportunities reserved for scores above 740. The average U.S. FICO score is around 715–717.
Your credit score affects:
A higher score offers borrowers access to better terms and lower costs—and helps avoid high‑interest or subprime loans.
Here are actionable steps you can take:
Credit scoring models are not perfect. Critics highlight issues such as racial bias, inaccuracies, and a lack of transparency. Disadvantaged groups may be disproportionately affected. Errors also remain common in credit reports, which can unfairly lower scores. Consumers have legal rights under the Fair Credit Reporting Act to dispute errors and request corrections.
Beyond FICO, alternative scoring systems like VantageScore and other proprietary or alternative‑data models exist. These may evaluate rent, utility, or telecom payments and can be more inclusive for individuals with limited traditional credit histories.
As federal student loan payments resumed in 2025, many borrowers saw credit score drops of 100–150 points due to delinquencies. Monitoring your score and keeping utilization low remains more critical than ever. Recent rulings reaffirm that medical debt over $500 can still appear on credit reports in many states.
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