What is Credit Score and why is it important?
If you are starting a life in the United States, you will probably hear about Credit Score sooner or later.
But what exactly is that number? Why is it so important? And what does someone who just arrived in the country need to know to start building a credit history?
In this AntaresTM News guide, we explain everything in simple terms.
What is Credit Score?
Credit Score is a score based on the information in your credit history. In simple terms, it helps companies and financial institutions evaluate your credit behavior and the risk that you may stop paying a debt.
The score can be used in decisions about credit cards, loans, auto financing, mortgages, and other financial products. It may also be considered in some rental and insurance situations.
Important: you do not necessarily have only one Credit Score. There are different scoring models, and the result can vary depending on the model used, the information available, and the moment the score is calculated.
Why is Credit Score important?
In the United States, credit history can be part of many everyday situations.
- Applying for a credit card
- Looking for financing to buy a car
- Looking for financing for a home
- Applying for certain types of loans
- Going through a rental process, depending on the situation
Besides affecting approval decisions, credit can also affect conditions such as interest rates and credit limits.
Credit Score vs. Credit Report
A Credit Report is your credit report. It gathers information about your credit-related financial history, including accounts, limits, balances, payments, credit inquiries, and, when applicable, records such as collections and bankruptcy.
A Credit Score is the score calculated from the information available in your credit history.
Think of it this way: Credit Report = your history. Credit Score = a score based on that history.
Who tracks your history?
In the United States, there are three major credit companies you will hear mentioned often: Equifax, Experian, and TransUnion.
These companies are known as credit bureaus or credit reporting companies. They receive information related to your credit accounts and keep reports that scoring models can use.
How is Credit Score calculated?
One of the best-known models is the FICO Score. In the FICO model, five major categories are considered:
- 35% — Payment history: your record of payments.
- 30% — Amounts owed: how much you owe and, especially with revolving credit, how much of your available credit is being used.
- 15% — Length of credit history: how long you have had credit accounts.
- 10% — New credit: factors related to opening new accounts and recent credit applications.
- 10% — Credit mix: different types of credit in your history.
Important: these percentages are specific to the FICO model. Other Credit Score models may use different criteria.
I just arrived in the United States and I don’t have credit history?
That is different from having a bad credit history. Someone who just arrived in the United States may simply not yet have enough credit history to generate certain scores.
Building credit takes time. According to FICO, to receive a valid FICO Score, the credit report needs, among other requirements, at least one account that has been open for six months or more and one account that has been reported to the bureau in the last six months.
Not having a history does not mean having bad credit. It means you are still starting to build your history in the United States.
Do I need a credit card?
A credit card can be part of building a credit history, but simply having a card does not guarantee a high Credit Score.
The most important thing is to understand how credit works and use any credit account responsibly: pay bills on time, keep track of your balances, understand your limit, avoid taking on debt you cannot pay, and check your Credit Report.
You do not need to carry a balance on the card to build credit. Paying the balance in full can be a way to use the card without keeping a month-to-month debt.
Five mistakes that can hurt your history
- Paying bills late. Payment history is one of the main components of the FICO Score.
- Using a very high share of available credit. The percentage of revolving credit used is an important factor in FICO models.
- Applying for several credit products at the same time. Many applications and new accounts in a short period can affect your history.
- Never checking your Credit Report. Errors or information you do not recognize can go unnoticed.
- Thinking Credit Score is money. Credit Score is a score based on information in your credit history; it is not available cash.
How can I track my credit?
One important way to take care of your credit is to check your Credit Report. In the United States, consumers can access their reports through the official service https://www.annualcreditreport.com.
When you check your report, look at whether the accounts really belong to you, whether the balances are correct, whether payments are being recorded correctly, whether there are accounts you do not recognize, and whether your personal information is correct.
Credit Score vocabulary
- Credit Score — pontuação de crédito
- Credit Report — relatório de crédito
- Credit History — histórico de crédito
- Credit Card — cartão de crédito
- Credit Limit — limite de crédito
- Balance — saldo/devido
- Payment — pagamento
- Due Date — data de vencimento
- Interest Rate — taxa de juros
- Credit Bureau — empresa de informações de crédito
- Late Payment — pagamento atrasado
- Debt — dívida
- Loan — empréstimo
- Credit Application — solicitação de crédito
A phrase you may hear: “What’s your credit score?” — “Qual é o seu Credit Score?”
More than a number
For anyone starting a new life in the United States, there are many new things to learn. Credit Score is one of them.
Understanding how credit works, knowing your own history, and learning to check your information can help you make more informed decisions throughout your life in the United States.
Building credit does not happen overnight. It is a process based on your history over time. Starting by understanding how it works is already a first step.
Here at AntaresTM News, we continue bringing practical information to help international students, immigrants, and families better understand life in the United States.
Editorial note
This content is for informational purposes only and is not financial advice, nor does it guarantee any financial result. Credit Score models, requirements, products, and practices can vary by lender, credit bureau, scoring model, and individual situation. Information can also change over time. Always consult official sources and qualified professionals for guidance on your specific financial situation.
Sources
- Consumer Financial Protection Bureau (CFPB) — information about Credit Score, Credit Reports, and credit use.
- FICO / myFICO — information about the factors considered in the FICO Score, payment history, new accounts, credit use, and Credit Mix.
- https://www.annualcreditreport.com — official service used to access consumer credit reports.
- FICO — information about the minimum history needed to generate a FICO Score.
- Information researched and reviewed in September 2026.
AntaresTM News. Your guide to life, education and opportunities in the United States.