Credit Score
A numerical rating representing a person's creditworthiness, typically ranging from 300 to 850.
Definition
A credit score is a three-digit number, typically between 300 and 850, that represents your creditworthiness — how likely you are to repay borrowed money. The most widely used scoring model is FICO, which considers five factors: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%). Scores above 740 are considered excellent, 670-739 good, 580-669 fair, and below 580 poor. Your credit score affects mortgage rates, credit card approvals, insurance premiums, and even rental applications. Building good credit requires consistent on-time payments, low credit utilization, and a long credit history.