What is a credit score?

Credit score versus credit report

A credit report is the underlying record: it can list credit accounts, balances, payment history, collections, public-record information allowed in consumer reports, and inquiries. A score is a model's numerical evaluation of selected information in one of those reports. The FTC explains that scoring systems use report data but may calculate it in different ways.

That distinction matters when you look for an error. You do not dispute the number itself; you review the report that supplied the data and dispute information that is inaccurate or incomplete. A lower score is not, by itself, evidence that the report is wrong.

What the common 300–850 range means

Many consumer credit scores use a 300–850 range, with a higher number generally indicating lower predicted repayment risk. That range is common, not universal: companies can use different scoring systems and ranges. Both the CFPB and FTC caution that models and their ranges vary.

There is also no single score that every lender calls “good.” Approval standards and pricing depend on the lender, product, score model, and other underwriting information. Use the rating supplied with your score, and ask a lender which score it expects to use when that detail matters.

How businesses use credit scores

Lenders and card issuers may use a score to help evaluate an application and set terms such as an interest rate. Some insurers and service providers also use specialized credit-based scores where law permits. The FTC describes these uses and the notices consumers may receive after an unfavorable decision.

A score is only one input. The FTC describes scores as tools businesses use to help decide whether and on what terms to extend credit. A lender may separately consider income, current obligations, the amount requested, collateral, and its own eligibility rules, so a particular score does not guarantee approval, denial, an interest rate, or a credit limit.

Why your credit scores can differ

Having several valid scores is normal. The CFPB identifies three main reasons: lenders choose different formulas for different products, models use different calculations, and the information can come from different reporting sources.

• Model and version: A mortgage score, auto score, bankcard score, and general educational score may not be the same product.
• Credit bureau: Equifax, Experian, and TransUnion may hold different account information on the day a score is requested.
• Timing: A newly reported balance, payment, account, or correction can change the data available to the next calculation.

To compare scores meaningfully, keep the model, version, bureau, and date as consistent as possible. A change between two differently labeled scores may reflect the products, not a change in your credit behavior.

Hard inquiries versus soft inquiries

A hard inquiry commonly occurs after you apply for credit and a lender checks your report to make a decision. Most scoring models consider recent applications, so a hard inquiry can affect a score. A soft inquiry includes checking your own report, account reviews, and some prescreening; it does not affect your credit scores. These categories and effects are defined in the CFPB's credit-inquiry guidance.

Before authorizing a check, ask whether it will be hard or soft and why the report is being requested. Reviewing your own reports is not an application for new credit.

Where to access your reports and scores safely

For reports from the three nationwide credit bureaus, start at AnnualCreditReport.com. It is the central source created by Equifax, Experian, and TransUnion for reports available under federal law. Type the address directly or use a trusted government link rather than entering personal data on a look-alike site.

A free credit report and a free credit score are not the same offer. Banks, card issuers, lenders, and monitoring services may provide scores, but the model and bureau should be identified. The FTC advises checking whether a “free” score offer enrolls you in paid monitoring.

1. Confirm the model, version, bureau, range, and score date.
2. Review the underlying reports for unfamiliar or inaccurate information.
3. Do not treat a score from one source as the exact score every lender will see.
4. Protect sensitive identifiers and use official, encrypted websites.

Put the number in context

Once you know what a score represents, learn how credit-scoring factors and model differences work. If report information appears wrong, use the separate guide to understand legitimate credit-report disputes and credit repair.