US Credit Score: What It Means, How It Works, and What Affects It

When you hear US credit score, a three-digit number that lenders use to judge how likely you are to repay debt. Also known as a FICO score, it's not just a number—it's a financial passport that opens or closes doors to mortgages, car loans, even apartments and cell phone plans. Unlike in some countries, your US credit score isn’t based on income or job title. It’s built entirely from your borrowing behavior—what you pay, when you pay it, and how much you owe.

That score is pulled from your credit report, a detailed record of your borrowing history from the three major bureaus: Equifax, Experian, and TransUnion. This report tracks every loan, credit card, and payment delay over the last seven to ten years. But here’s what most people miss: your credit utilization, the percentage of your available credit you’re using. If you’ve got $10,000 in credit limits and you owe $8,000, that’s 80% utilization—and it tanks your score. Experts say keeping it under 30% is smart. Even better? Under 10%. It’s not about how much you earn—it’s about how you manage what you borrow.

Payment history is the biggest piece of your score, making up nearly 35%. One missed payment can drop you 100 points. But the good news? Paying on time for six months straight starts to heal the damage. Your length of credit history matters too. Keeping an old credit card open—even if you don’t use it—helps show lenders you’ve handled money responsibly over time. New credit applications? Too many in a short window signal risk. And mix matters: having both a credit card and a car loan can help, but only if you handle them well.

There’s no magic number you need to chase. A score of 700 gets you good rates. 750 gets you great ones. 800? That’s elite, but not necessary. What matters is understanding what moves the needle so you’re not stuck paying extra because of a number you don’t control. Below, you’ll find real advice from people who’ve fixed their scores, avoided scams, and used credit smartly—not just in the US, but with lessons that apply anywhere.