Definition
A three-digit number that sums up how reliably someone has repaid debt, which lenders use to decide whether to lend and at what rate.
The story
The best-known scores, FICO scores (named for the company Fair Isaac Corporation), run from 300 to 850. Payment history is the biggest single factor in a FICO score, followed by amounts owed, which includes how much of your available credit you're using. A higher score can mean a lower interest rate on a mortgage, car loan or credit card, which can add up to thousands of dollars over a loan's life.
Why markets watch it
When the Fed moves rates, your credit score helps decide how much of that change reaches you.
See it in the story
Connects to
Credit reportInterest rateMortgage ratesCredit card interest
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms