Credit Score
A three-digit number, typically 300 to 850, that lenders use to estimate how likely you are to repay borrowed money.
What Credit Score means
A credit score condenses your credit report into a single number predicting repayment risk. Higher is better; most lenders treat 740 and above as excellent and below 580 as poor.
The dominant inputs are payment history and how much of your available credit you are using. Length of credit history, mix of account types, and recent applications for new credit make up the rest.
Your score determines not just whether you are approved but what you pay. The rate spread between excellent and fair credit on a 30-year mortgage routinely exceeds a full percentage point — tens of thousands of dollars over the life of the loan.
You have more than one score. Different bureaus hold slightly different data and different scoring models weigh it differently, so the number varies depending on who is asking.
Related terms
FICO Score
The credit scoring model used in the large majority of US lending decisions, ranging from 300 to 850.
VantageScore
A credit scoring model built jointly by the three credit bureaus, using the same 300–850 range as FICO but weighing inputs differently.
Credit Utilization Ratio
The share of your available revolving credit you are currently using — one of the largest single inputs to a credit score.
Hard Inquiry (Hard Pull)
A lender's review of your credit report when you apply for credit — recorded on the report and worth a few points for about a year.
Debt-to-Income Ratio (DTI)
The share of your gross monthly income that goes to debt payments — a key test lenders apply when sizing a mortgage.
Debt Avalanche Method
A payoff strategy that attacks your highest-interest debt first, which costs the least in total interest.
Underwriting
The process a lender or insurer uses to verify your finances and decide whether to approve you, and on what terms.
Run the numbers
Credit Card Payoff Calculator (Avalanche vs. Snowball)
Compare the debt avalanche and debt snowball methods across all your cards — see payoff time, total interest, and how much each strategy saves.
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