What Is a Credit Score?
A credit score is a three-digit number, typically ranging from 300 to 850, that summarizes your credit risk based on your credit history. Lenders use it to help decide whether to approve a loan or credit card application, and what interest rate to offer.
FICO Score vs VantageScore
The two most widely used scoring models in the US are FICO Score and VantageScore. Both use similar underlying factors but weight them somewhat differently, and can produce slightly different numbers from the same credit history. FICO Score has historically been the more widely used model among mortgage lenders specifically.
What Affects Your Score?
Common factors across both models include payment history, credit utilization, length of credit history, credit mix, and new credit inquiries. Payment history and utilization are typically the two most heavily weighted factors in most models.
How to Check Your Score
US consumers are entitled to a free copy of their credit report from each of the three major bureaus — Equifax, Experian, and TransUnion — through AnnualCreditReport.com. Many banks and credit card issuers also provide a free score as part of your account.