A credit score is a three-digit number that sums up, at a glance, how a lender is likely to see your borrowing history. It decides whether you get approved for a credit card, a car loan or a mortgage, and what interest rate you are offered. Yet most people have never been told how the number is actually built — or that they do not have just one score, but many.
This guide covers what a credit score is, how the main models calculate it, what the ranges mean in the US, UK, Australia and Canada, and how to check your own reports. It is educational only, not personal financial advice, and no score outcome is guaranteed.
What a credit score actually is
The Consumer Financial Protection Bureau (CFPB) — the US federal agency that oversees consumer finance — defines a credit score as “a prediction of your credit behavior, such as how likely you are to pay a loan back on time, based on information from your credit reports.” Companies use scores to decide whether to offer you a mortgage, credit card, auto loan or other credit product, and they can also be used for tenant screening and insurance.
A score is a prediction, not a judgement of character. It is produced by a scoring model — a mathematical formula that reads your credit report and turns it into a single number. The report is the underlying record of your accounts, balances and payment history; the score is the summary. Lenders look at both, so the report is always the place to start.
You do not have just one credit score
One of the most common misunderstandings is that each person has a single, fixed credit score. The CFPB stresses that this is not the case. You have many scores, and they can differ for three reasons: lenders use different scoring models and versions, the credit-report data behind each score can differ, and the data can be pulled at different times.
In the United States, three nationwide credit reporting companies hold your files: Equifax, Experian and TransUnion. Each collects information from your lenders, so your three reports can disagree. Two main scoring models then turn that data into numbers — FICO and VantageScore, each in several versions — so the score a card issuer sees can differ from the one a mortgage lender sees, even on the same day.
How a FICO score is calculated
FICO is the model most US lenders use. Its maker, the Fair Isaac Corporation, publishes the five categories behind it and their typical weightings — which can vary depending on what is in a person’s credit report:
| Factor | Typical weight | What it covers |
|---|---|---|
| Payment history | 35% | Whether you have paid accounts on time |
| Amounts owed | 30% | Balances and how much of your available credit you use |
| Length of credit history | 15% | How long your accounts have been open |
| New credit | 10% | Recent applications and newly opened accounts |
| Credit mix | 10% | The variety of credit types you manage |
Payment history carries the largest weight, at about 35%; amounts owed, at 30%, is mostly about credit utilisation — the percentage of your available revolving credit that you are using.
FICO also states what is not used: income, age and where you live do not factor into its calculations. A higher income does not raise your score, and a lower income does not lower it — the model only reads your credit behaviour. VantageScore, the other major US model, uses the same 300 to 850 scale but weighs the factors differently.
What the numbers mean: FICO score ranges
Most credit scores in the United States range from 300 to 850, according to the CFPB, although different companies use different ranges. FICO publishes its own bands for its widely used base scores:
| FICO score | Rating |
|---|---|
| 800–850 | Exceptional |
| 740–799 | Very good |
| 670–739 | Good |
| 580–669 | Fair |
| 300–579 | Poor |
A score of 670 or above is generally described as good. According to FICO’s Score Credit Insights report from spring 2026, the national average FICO score in the United States is 714 — inside the “Good” band. These bands are guides, not guarantees: each lender sets its own thresholds.
How credit scores work in the UK
The United Kingdom has no single national score. Three credit reference agencies — Experian, Equifax and TransUnion — each calculate their own score, on their own scale, using their own model. All three are private companies regulated by the Financial Conduct Authority (FCA), and lenders also run their own internal scorecards, so the number an agency shows you is a guide rather than the exact figure a lender uses.
| Agency | Scale | “Good” band |
|---|---|---|
| Experian | 0–999 | 881–960 |
| Equifax | 0–1,000 | 531–670 |
| TransUnion | 0–710 | 604–627 |
Because the scales differ, the same person can have three very different-looking numbers that mean roughly the same thing. Experian’s top band is Excellent at 961–999, Equifax’s at 811–1,000, and TransUnion’s at 628–710.
Two changes are under way: Experian moved to a new 0–1,250 scale from mid-November 2025, and TransUnion is moving from 0–710 to 0–999, with a rollout running into 2027. If your report shows a different scale, check the band printed on your own report.
How credit scores work in Australia and Canada
Australia also has three credit reporting bodies — Equifax, Experian and illion — each with its own scale. Equifax scores run from 0 to 1,200, with Good at 661–734 and Excellent at 853–1,200. Experian scores run from 0 to 1,000, with Good at 625–699 and Excellent at 800–1,000. Illion was acquired by Experian in 2024, and from 1 April 2026 the two operate as a single Experian credit reporting body. The national average Equifax score in 2025 was 864, in the Excellent band on that scale.
Canada’s two bureaus, Equifax Canada and TransUnion Canada, both use a 300 to 900 scale, and Canada does not use the FICO system — a US FICO score has no bearing on a Canadian score. Equifax Canada’s bands are 300–559 Poor, 560–659 Fair, 660–724 Good, 725–759 Very Good and 760–900 Excellent. According to 2026 data from Borrowell, the average Canadian score is 679.
The lesson across all four countries is the same: the number only means something on the scale that produced it. A 700 is good in the United States, fair on one UK scale, and very good on another. Always read the band, not just the digits.
How to check your credit report and score
In the United States, you are entitled to one free credit report from each of the three major credit reporting companies every 12 months, via annualcreditreport.com or by calling 877-322-8228. Equifax also offers six free reports every 12 months until 31 December 2026, according to the CFPB. Companies may charge for your scores, but a free score may be available from your card issuer, another lender, or a non-profit credit or housing counsellor.
In the UK, each agency offers a free way to see your report and score, including Experian’s free account, ClearScore for Equifax data, and the MoneySavingExpert Credit Club for TransUnion. In Australia and Canada, you can request a free copy of your credit report from each reporting body.
Wherever you live, check all of your reports, not just one, because the data can differ between bureaus. Look for accounts you do not recognise, payments marked late that you believe were on time, and balances that look wrong. If you find an error, dispute it — under the US Fair Credit Reporting Act and equivalent rules elsewhere, you have the right to have inaccurate information investigated and corrected.
What actually moves a score over time
No single action guarantees a particular score, and anyone who promises a fast, fixed increase should be treated with suspicion. The factors above point to the habits scoring models reward: paying on time, keeping balances low relative to your limits, avoiding a rush of new applications, and letting accounts age. Recent activity weighs heavily, so a late payment matters more when it is fresh and fades with time.
Keeping older accounts open can also help, because closing your oldest card can shorten your average account age.
Treat a credit score as a dashboard, not a verdict: a summary of data you can inspect, dispute and influence over time. Check your reports regularly, understand which scale you are reading, and if you need personal guidance, consider speaking with a qualified, independent financial counsellor.
For a wider view of how credit fits into long-term planning, read our guide to what a 401(k) is, including contributions, matching and withdrawals, and see how wealth is measured — and what the numbers leave out — in how the billionaires list is calculated.
This article is for general education only and is not financial advice. Credit scoring rules, bands and scales change; confirm current figures with the bureau or regulator before relying on them.
Sources
- Consumer Financial Protection Bureau, “What is a credit score?” — https://www.consumerfinance.gov/ask-cfpb/what-is-a-credit-score-en-315/
- Consumer Financial Protection Bureau, “Understand your credit score” — https://www.consumerfinance.gov/consumer-tools/credit-reports-and-scores/understand-your-credit-score/
- myFICO, “What’s in my FICO Scores?” — factor weights and score bands, via myfico.com
- FICO, FICO Score Credit Insights report, spring 2026 — US national average FICO Score of 714
- Experian UK, Equifax UK and TransUnion UK — published score bands and scales
- Equifax Australia, Experian Australia and illion — published score bands and scales
- Equifax Canada and the Financial Consumer Agency of Canada — score bands and the 300–900 range
- Borrowell — 2026 data on the average Canadian credit score (679)