Definition
A three-digit number, usually from 300 to 850, that estimates how likely you are to repay borrowed money on time.
What it means
A credit score is calculated from the information in your credit report. Lenders, landlords, insurers in many states and some employers' screening companies use scores to make decisions and set prices; a higher score generally means lower interest rates. There are many scoring models, so you have more than one score. The main factors are your payment history, how much of your available credit you use, the length of your credit history, the mix of accounts and recent applications. You can usually see a free score through a bank or card issuer. Newcomers to the U.S. often start with no score because foreign credit history does not transfer; the CFPB lists ways to build credit, such as secured cards and credit-builder loans. Checking your own score does not lower it.
Example
On a $300,000 30-year mortgage, a rate of 6.5% instead of 7.5% because of a higher score lowers the monthly principal-and-interest payment from about $2,098 to about $1,896, roughly $200 a month.
Illustrative numbers only. Your situation will differ.