A three-digit number (usually 300-850) that summarizes your credit history. Lenders use it as the first filter for approval and to set your interest rate.
Your credit score is a snapshot of how reliably you've handled borrowed money. It's calculated from your credit report by scoring models — the most common is FICO, with VantageScore as a close second.
Most credit scores fall between 300 and 850. Higher is better. For mortgages, here's the rough breakdown: 740+ typically gets the best rates, 680-739 is solid, 620-679 qualifies for most loans but at higher rates, 580-619 may qualify for FHA only, and below 580 typically needs special programs or credit repair first.
Your score is influenced most by payment history (35%) and credit utilization (30%), with length of credit, mix of credit, and new credit accounting for the rest. Paying on time and keeping card balances low are the two biggest levers.
Example
A 760 credit score might get you a 6.5% rate on a 30-year fixed. The same loan with a 640 score might cost 7.25% — about $158/month more on a $320,000 loan, or $56,880 over 30 years.
Also known as
FICO score, credit rating, credit number
Source:
CFPB