PlayInfoBox

Home /Education /US Credit Scores 101: What They Are and How They're Calculated

US Credit Scores 101: What They Are and How They're Calculated

Here is what a US credit score actually measures and which habits move it the most.

The scale runs from 300 to 850

Most common US credit scoring models, including FICO and VantageScore, use this range. Higher is better; scores are generally described as good once they clear the high 600s, though exact cutoffs vary by lender.

Payment history matters most

On-time versus late payments is typically the single most heavily weighted factor across major scoring models, often described as making up roughly a third of the score.

Credit utilization is the second-biggest factor

This is the ratio of your credit card balances to your credit limits. Keeping utilization low β€” a commonly cited rough guideline is under 30% of your limit β€” tends to help your score.

Length of credit history

Older accounts and a longer average account age generally help, which is one reason financial advice often discourages closing your oldest credit card.

New credit and hard inquiries

Opening several new accounts in a short period, or racking up multiple hard inquiries, can cause a small temporary dip in your score.

Mix of credit types

Having a mix of revolving credit (like credit cards) and installment loans (like an auto loan or mortgage) is generally viewed slightly more favorably than having only one type.

Why the score exists

A credit score gives lenders a fast, standardized way to estimate how risky it is to lend to you, without manually reviewing your entire credit history every time you apply for something. The same score is also used, in various ways, by landlords, some insurers, and occasionally employers.

Two different companies, two different numbers

FICO and VantageScore are the two most widely used credit scoring brands in the US, and they calculate scores slightly differently from the same underlying data. Your score can also differ across the three major credit bureaus β€” Equifax, Experian, and TransUnion β€” since not every creditor reports to all three.

Frequently Asked Questions

What's a 'good' credit score?

Rough, commonly cited ranges place good around the high 600s to low 700s, very good in the 700s, and exceptional at 800 and above, but exact cutoffs vary by lender and by which scoring model is used, so treat these as general guidance rather than a fixed rule.

Does checking my own credit score hurt it?

Checking your own score through a bank app or a free credit-monitoring service is generally a 'soft inquiry' and does not affect your score. Only 'hard inquiries', which happen when you actually apply for new credit, can cause a small, temporary dip.