Credit scoring factors and determination in the US

Credit scores, which typically range from 300 to 850, are calculated using scoring models like FICO and VantageScore based on information found in credit reports. The primary factors influencing these scores include payment history and total debt load, followed by the length of credit history, the mix of available credit, and recent credit inquiries.

Information is compiled by the three major credit bureaus: Equifax, Experian, and TransUnion. Because not all creditors report to every agency, scores from different bureaus may vary even when using the same model. A higher credit score can lead to lower interest rates on loans, better credit card options, and may influence insurance rates and apartment rental eligibility in most of the United States.