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30Y FIXED6.85%↑ 0.02·15Y FIXED6.12%↓ 0.01·REFI 30Y6.78%↑ 0.01·HELOC9.20%0.00·JUMBO 30Y7.05%↑ 0.03·HYSA TOP4.85%↓ 0.05·12M CD5.10%0.00·24M CD4.85%↓ 0.02·5Y CD4.40%↑ 0.01·MMA TOP4.65%0.00·AUTO 60M NEW7.10%↓ 0.02·AUTO 60M USED8.45%↑ 0.04·PERSONAL EXC.8.20%0.00·10Y TREASURY4.32%↑ 0.01·30Y FIXED6.85%↑ 0.02·15Y FIXED6.12%↓ 0.01·REFI 30Y6.78%↑ 0.01·HELOC9.20%0.00·JUMBO 30Y7.05%↑ 0.03·HYSA TOP4.85%↓ 0.05·12M CD5.10%0.00·24M CD4.85%↓ 0.02·5Y CD4.40%↑ 0.01·MMA TOP4.65%0.00·AUTO 60M NEW7.10%↓ 0.02·AUTO 60M USED8.45%↑ 0.04·PERSONAL EXC.8.20%0.00·10Y TREASURY4.32%↑ 0.01·
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Glossary term

Credit Score

What a credit score is, the difference between FICO and VantageScore, what the ranges mean, and the five factors that determine your score.

What Is a Credit Score?

A credit score is a three-digit number that summarizes your creditworthiness based on the information in your credit report. Lenders, landlords, and insurance companies use it to quickly assess how likely you are to repay a debt or fulfill a financial obligation.

The most widely used score is the FICO Score, developed by Fair Isaac Corporation. The second most common is VantageScore, developed jointly by the three credit bureaus.

FICO vs. VantageScore

FICO Score: Used by approximately 90% of top lenders for credit decisions. Scores range from 300 to 850. Multiple versions exist (FICO 8, FICO 9, FICO 10), and lenders choose which version to use. Most mortgage lenders use older FICO versions (FICO 2, 4, or 5).

VantageScore: Also ranges 300 to 850. Used more by free credit monitoring services and some lenders. Generally produces similar scores to FICO for most consumers, but the weighting of factors differs slightly.

When you check your score through a free service like Discover's Credit Scorecard or Capital One CreditWise, you may see a VantageScore version. Your FICO score is what most lenders actually see. The two scores are usually within 20 to 30 points of each other for most consumers.

FICO Score Ranges

| Score Range | Category | |------------|----------| | 800 to 850 | Exceptional | | 740 to 799 | Very Good | | 670 to 739 | Good | | 580 to 669 | Fair | | 300 to 579 | Poor |

Good (670 to 739): Qualifies for most mainstream credit cards and auto loans at competitive rates. Not the best rates but not penalized.

Very good (740 to 799): Qualifies for the best credit cards and most prime loan rates. Mortgage approvals are straightforward.

Exceptional (800+): Best available rates on all products. Credit card approvals are routine. Reserved for those with long, pristine credit histories.

Five Factors of Your FICO Score

| Factor | Weight | What It Measures | |--------|--------|-----------------| | Payment history | 35% | On-time vs. late payments | | Credit utilization | 30% | Balance as % of credit limit | | Length of credit history | 15% | Age of oldest and average accounts | | Credit mix | 10% | Diversity of account types | | New credit | 10% | Recent applications and new accounts |

For a detailed explanation of utilization, see credit utilization explained. For FICO score specifics, see FICO score.

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