Your credit score is a number ranging from 300 to 850 that depicts how creditworthy you are to lenders. This helps lenders understand how much of a liability or risk you may be if they were to give you money. A credit score is based on your entire credit history.

Types of Credit Scores (Credit Scoring Models)

There are two main scoring models: FICO and VantageScore.


There are many lesser known scoring models used in very niche situations. These two scoring models use information supplied to the three main reporting credit bureaus: Experian, TransUnion and Equifax.

FICO Credit Scores

FICO, or Fair Isaac Corporation, is the most popular scoring model and is used in nearly everything. A FICO score can be industry-specific based on the type of loan or credit line a person is applying for.


There are different FICO score versions and the latest is called “FICO Score 9”. This latest version gives less weight to medical debts compared to non-medical debts and adjusts how they calculate collections into the overall score. The difference in FICO Score 9 and others is that it now takes in non-standard methods of “building credit”, like having your landlord report rent payments to the bureaus.


Understanding why there are different types of scores is crucial in making sure you’re staying on top of your finances.


A FICO score can range from 300 to 850.


The key factors affecting your FICO score: Payment History, Total Debt, Length of Credit History

VantageScore Credit Scores

VantageScore was created as a direct competitor to the FICO score. Your FICO score is created by a 3rd party entity whereas your VantageScore was created by the three reporting bureaus and their desire to put their spin on lenders should view credit.


Initially, the VantageScore was a lot more lenient than the FICO scoring model. It’s used often for people who don’t have a credit score or are in the process of building credit. This is due to the fact that FICO takes up to 6 months to even have a score available and in many cases it takes longer. Your VantageScore can be adjusted to compare your financial liability for certain debt types. For example, a lender can remove medical debt from consideration if they desire.


A VantageScore can range from 300 to 850.


The biggest advantage to your VantageScore is that it doesn’t take into account any past collections which is very useful for someone who has had a rocky past and is trying to repair their credit.


The key factors affecting your VantageScore score: Payment History, Age & Type of Credit, Debt to Credit Ratio

Credit Score Ranges

The standard credit score range is from 300 to 850.


A majority of the United States falls in the 600 and 750 range with 67% of Americans having a good credit score. The higher the score the better your decision making is with your finances and the likelier a lender is willing to give you credit or money.


A good credit score is generally anything above 700 on either scale. A score of 800 in the same range is considered to be excellent.

FICO Credit Score Range Breakdowns

  • 300 – 579 or Very Poor
    • Around 16% of Americans are in this range. Applicants will most likely be required to pay a free or deposit and many applicants won’t be approved for credit.
  • 580 – 669 or Fair
    • Around 17% of Americans are in this range. Applicants will be considered as subprime borrowers and will most likely not get favorable rates.
  • 670 – 739 or Good
    • Around 21% of Americans are in this range. Applicants will more than likely be approved for all requests and typically have a very slim chance of going delinquent.
  • 740 – 799 or Very Good
    • Around 25% of Americans are in this range. Applicants will receive better than average rates.
  • 800 – 850 or Exceptional
    • Around 21% of Americans are in this range. Applicants will receive the best rates and limits.

VantageScore Credit Range Breakdowns

  • 300 – 499 or Very Poor
    • Around 5% of Americans are in this range. Applicants will not likely be approved for credit.
  • 500 – 600 or Poor
    • Around 21% of Americans are in this range. Applicants may be approved for some credit but will get very unfavorable rates.
  • 601 – 660 or Fair
    • Around 13% of Americans are in this range. Applicants may be approved for credit but won’t get competitive rates.
  • 661 – 780 or Good
    • Around 38% of Americans are in this range. Applicants are likely to be approved for credit at competitive rates.
  • 781 – 850 or Excellent
    • Around 23% of Americans are in this range. Applicants are likely to receive the best rates and most favorable terms.

What affects your credit scores?

There are five factors that influence your credit score. The key is to focus on the factors that influence it the most and to balance efforts in other areas over time.


The five factors that affect your credit score are:

  • Payment History (35%): Your payment history makes up a bulk of your credit score at 35%. A missed or late payment can hurt your score dramatically. Lenders want to make sure you can pay your bills.
  • Amount of Debt (30%): The amount of your debt is critical when lending decisions are made. This makes up around 30% of your credit score rating. Lenders want to see less than 30% of your credit being used at any given time.
  • Credit Age (15%): The older your credit accounts are the better. Lenders want to see stability in your credit profile. The older your credit the better and it makes up 15% of your credit score.
  • Account Mix (10%): Lenders like to see a mix of accounts in your profile. This makes up 10% of your credit score and helps lenders understand your risk. Basically if others of the same credit type will lend to you, they should too.
  • Inquiries (10%): The total inquiries on your credit report or history makes up 10% of your score rating. Lenders don’t want to see an impulsive credit history where you’re applying for tons of credit cards or loans.

Each scoring model puts more weight into various categories but for the most part staying on top of your finances will reap good rewards. You should strive to keep your debt utilization under 30%, pay all of your bills on time, have a nice mix of accounts, keep the debt down for unnecessary debts, steer clear of public records, and limit how often you add accounts or inquiries to your report.


A lot of people think there are other factors, like age, that affect your credit score and that’s a common misconception.


The most common factors people think affect your score but they do not:

  • Age
  • Race, Color, Religion, Origin, etc.
  • Salary, Occupation, Title
  • Location (Where You Live)
  • Soft Inquiries

If you check your own score or if you use a service to check or monitor your score or report you will not hurt your credit. You can access your free credit report once per year and after that you have to connect with one of the service providers.

How Fast Do Scores Update?

A credit score is calculated based on the information available at that time. If new information is found, such as a payoff, your score will be adjusted accordingly. Most of the scores are calculated monthly but sometimes they go in 3-month intervals based on the consumers financial background.