A credit score is a number, typically ranging from 300 to 850, that lenders use to judge how risky it is to lend you money. The higher the number, the more reliably you've historically repaid what you owe, at least as far as the data shows.
Report vs. score
Credit report
The underlying record: your accounts, balances, payment history, and any collections or public records. This is what AnnualCreditReport.com gives you. It does not usually include your numeric score.
Credit score
A number calculated from your report, most commonly using the FICO or VantageScore models. Many banks and credit card issuers now show one of these scores for free as a card or account perk — check whether yours already does before paying for it anywhere.
What actually affects your score
The exact formula is proprietary, but the major scoring models weigh a similar set of factors:
| Factor | Roughly what it measures |
|---|---|
| Payment history | Whether you've paid on time. The single biggest factor — late or missed payments hurt the most. |
| Amounts owed | How much you owe relative to your available credit (your utilization), especially on revolving accounts like credit cards. |
| Length of credit history | How long your accounts have been open. Older, established accounts generally help. |
| New credit | How many new accounts or hard inquiries you've had recently. A flurry of new applications can look risky. |
| Credit mix | Whether you have a mix of account types (credit cards, installment loans, etc.) rather than just one kind. |
Checking your own report or score is a "soft" inquiry and never lowers your score. Once you're tracking it, see Protecting Your Credit for how to keep someone else from opening accounts in your name.