are three-digit numbers that lenders use to evaluate the creditworthiness of a potential borrower. They are calculated using the information in your credit reports, such as your payment history, the amount of debt you owe, and the length of your credit history. The higher your credit score, the better your chances of securing favorable loan terms.
In the United States, credit scores
typically range from 300 to 850. Different credit scoring models may use slightly different ranges, but most fall within this spectrum. The main credit scoring models used by lenders are FICO and VantageScore, both of which use similar but not identical criteria to determine your score.Credit scores
are essential in determining whether you'll be approved for a mortgage, car loan, or credit card. They can also affect the terms of your loan, including your interest rate and loan amount.