Quick answer
A credit score is a number, usually between 300 and 850 in the US, that predicts how likely you are to repay a loan on time. Scoring models calculate it from the information in your credit reports, such as payment history, debts and how long you have had credit[1].
Key points
- A credit score is a prediction made from your credit report; the report is the record, the score is the summary.
- You do not have one score: different models, bureaus and dates give different numbers.
- For FICO Scores, payment history (35%) and amounts owed (30%) are the two biggest categories.
- In the US most negative information can stay on a credit report for seven years, bankruptcies up to ten.
- In the UK each credit reference agency calculates its own score, lenders use their own criteria and the statutory credit report is free.
On this page
- What is a credit score, in plain English?
- Where does the information in a credit score come from?
- Which factors move a credit score the most?
- Why do I have more than one credit score?
- How long does bad information stay on a credit report?
- How can you check your credit report for free?
- What happens when a lender says no because of your score?
- How does a credit score affect the price of a loan?
- FAQ
- Sources
#What is a credit score, in plain English?
When you ask to borrow money, the lender wants to know one thing: will this person pay me back? A credit score is a quick answer to that question. The US Consumer Financial Protection Bureau (CFPB) defines it as a prediction of your credit behaviour, such as how likely you are to pay a loan back on time, based on information from your credit reports[1]. Most US credit scores fall between 300 and 850, and a higher number means the model sees you as a lower risk[1]. The short version lives in our glossary entry for credit score.
Two words are easy to mix up. Your credit report (called a credit file in the UK) is the detailed record: your accounts, balances, payments and public records. The credit score is a number a computer model calculates from that record. Companies called credit bureaus or credit reference agencies collect the records; separate companies, and sometimes the bureaus themselves, build the scoring models.
#Where does the information in a credit score come from?
Lenders such as banks and card companies send monthly updates to credit bureaus about the accounts you hold and whether you paid on time. In the UK, the Information Commissioner's Office (ICO) explains that the three main consumer credit reference agencies are Equifax, Experian and TransUnion, and that lenders use their information to decide whether to offer you credit[2]. Not every lender reports to every agency, so your files at different agencies can differ[2].
From your payments to a lending decision
- Your accounts — cards, loans, phone plans
- Lenders report — monthly updates
- Credit bureau — keeps your credit report
- Scoring model — turns report into number
- New lender — approves, prices, declines
#Which factors move a credit score the most?
The CFPB lists the kinds of information scoring models look at: whether you pay on time, how much you owe, the number and types of loan accounts, how long accounts have been open, how much of your available credit you use, recent applications for credit, and negative events such as collections or bankruptcy and how recent they are[1]. FICO, one of the best-known scoring companies, publishes how much each category weighs for the general population[3].
| Category | Weight | What it means for a beginner |
|---|---|---|
| Payment history | 35%[3] | Did you pay past accounts on time? Late payments hurt most. |
| Amounts owed | 30%[3] | How much of your available credit you are using. |
| Length of credit history | 15%[3] | How long your accounts have been open. |
| New credit | 10%[3] | Opening several accounts in a short time looks riskier. |
| Credit mix | 10%[3] | The variety of credit types; you do not need one of each. |
FICO says the importance of each category can differ for individuals, for example for people who have not been using credit for long.
Notice what is not on the list. A credit score does not use your salary or your savings balance directly, because those are not normally in a credit report. That is why someone with a good income but no borrowing history can still have a thin file, a problem we explore in alternative credit data explained.
Worked example
Worked example: credit utilisation
'Amounts owed' is often measured as utilisation: total card balances divided by total card limits. Here is a simple case, computed with code. It shows the ratio only; no one outside the scoring company can tell you exactly how many points a change is worth.
- Card 1: balance $600, limit $1,000
- Card 2: balance $300, limit $2,000
- Total balances ÷ total limits
- $900 ÷ $3,000 = 30%
- After paying total balances down to $300
- $300 ÷ $3,000 = 10%
#Why do I have more than one credit score?
Because the number depends on who calculates it, with which model and on which day. The CFPB notes that you do not have just one score: different scoring models, different credit bureau data and the date of the calculation all produce different results[1]. A mortgage lender may use an older model, a card company a newer one. Small differences between apps are normal and do not mean anything is wrong.
In the UK the picture is different again. MoneyHelper, the UK government-backed money guidance service, explains that each credit reference agency calculates its own score, and that a high score does not guarantee credit because each lender uses its own criteria[4]. Checking your own report is a soft search and does not affect your score, while a hard search from a credit application is visible to lenders[4].
#How long does bad information stay on a credit report?
In the US, a credit reporting company can generally report most negative information for seven years, and bankruptcies can stay for up to ten years[5]. In the UK, missed or late payments, defaults and county court judgments stay on your credit report for up to six years[4]. The impact of a negative mark usually fades as it ages, especially if newer records show on-time payments.
#How can you check your credit report for free?
In the US, the Federal Trade Commission explains that the three nationwide credit bureaus have permanently extended a programme that lets you check your report from each of them once a week for free at AnnualCreditReport.com, the only authorised site for free reports[6]. In the UK, every credit reference agency must give you your statutory credit report free of charge, and the ICO says you can ask for it verbally or in writing[2]. A free report does not always include a score, but the report is what matters: errors in it flow straight into the score.
A simple yearly credit check
Get every report
Request your report from each main bureau, because lenders do not all report to the same one.
Check identity details
Look for addresses, names or accounts you do not recognise, which can be a sign of fraud.
Check each account
Confirm balances, limits and payment markers match your own records.
Dispute errors
Raise mistakes with the bureau and the lender that reported them, and keep copies.
#What happens when a lender says no because of your score?
In the US, a lender that turns you down must tell you. Regulation B, which implements the Equal Credit Opportunity Act, gives creditors 30 days after receiving a completed application to notify you of their decision, and if the answer is no, the reasons must be specific and indicate the principal reasons[7]. Saying only that you 'failed to achieve a qualifying score' is not enough[7]. Those reasons are useful clues about what to fix.
Common beginner mistakes about credit scores
Thinking checking your own score lowers it
Looking at your own report is a soft search and does not affect your score.
Believing there is one official score
There are many models and several bureaus; the number a lender sees may differ from the one in your app.
Closing old accounts to 'clean up'
Old accounts add to the length of your history and closing a card can raise your utilisation.
Ignoring small debts
A forgotten phone bill or BNPL instalment can still become a missed payment on your file. See how buy now, pay later works.
#How does a credit score affect the price of a loan?
The CFPB notes that lenders use credit scores not only to decide whether to lend but also to set interest rates and credit limits, and that scores are used in tenant screening and some insurance decisions[1]. A lower score usually means a higher price for borrowing, which shows up in the APR. Learn how to read that number in APR vs APY explained.
The bottom line
A credit score is a calculated prediction built on the records in your credit report. Paying on time and keeping balances low relative to limits matter most, negative marks fade over years, and you have several scores rather than one. Check your reports regularly, because accurate data is the only thing the score can work with.
Frequently asked questions
What is a good credit score?
There is no single cut-off because each lender sets its own rules. On the common 300 to 850 scale used in the US, a higher score signals lower risk[1].
Does my income affect my credit score?
Not directly. Income is not usually part of a credit report, although lenders may ask for it separately when you apply.
How long do late payments stay on my report?
Sources
- What is a credit score? — Consumer Financial Protection Bureau, 2026 Primary
- Credit — Information Commissioner's Office (UK) Primary
- What's in my FICO Scores? — FICO (myFICO) Primary
- How to check your credit report for free — MoneyHelper (Money and Pensions Service) Primary
- How long does negative information remain on my credit report? — Consumer Financial Protection Bureau, 2026 Primary
- Free Credit Reports — Federal Trade Commission, 2026 Primary
- 12 CFR 1002.9 — Notifications (Regulation B) — Consumer Financial Protection Bureau Primary
