Imagine a number that can determine where you will live, how much interest you will pay, and even whether you’ll be able to buy a car to get to work. In the United States, that number exists and it’s called the credit score.
Although it’s just a three-digit number ranging from 300 to 850, the credit score carries a disproportionate weight in the financial lives of Americans. It is used to assess a person’s “creditworthiness” when applying for credit, and its effects go far beyond the banking system: it impacts the present, the future, and even the opportunities of future generations.
A Financial Résumé That Opens or Closes Doors
The financial history of consumers and businesses is fundamental in the credit approval process. But in the United States, the process is even deeper and has the power to close doors for those with a poor record and open exclusive advantages for those with a good financial reputation.
In the U.S., the credit score functions as an official financial résumé. Those with high scores not only have easier access to credit cards, mortgages, and loans, but can also secure lower interest rates, saving thousands of dollars over time.
What Is Considered a Good Score?
According to Experian, one of the main credit agencies in the United States, the average American credit score in 2023 was 715 points. This is already considered a good credit history. The score is categorized as follows:
- 300 to 579: very poor
- 580 to 669: fair
- 670 to 739: good
- 740 to 799: very good
- 800 to 850: excellent
Currently, 21% of the adult U.S. population falls in the 800+ range, considered excellent. And only 1.54% reach the coveted perfect score of 850 points.
Most of the population — about 67% — has a score classified as good or better. Still, many continue seeking ways to improve their scores, as it directly translates to more credit and lower interest rates.
How Does the Credit Score Affect Your Life?
In practice, this number influences:
- Whether you can get a loan, credit card, or mortgage
- How much interest you will pay
- The cost of your car insurance
- The deposit required when renting an apartment
- And even whether you can finance a car, education, or your own business
In a country where access to credit is an essential part of everyday life, having a low score can mean financial exclusion — and interest rates can vary from 5% to over 35%, depending on your score.
An Objective System… But Not Necessarily Fair
The credit score was created to standardize and streamline credit decisions, but the system still carries historical inequalities. Those with family support (parents who act as co-signers, for example) tend to begin building a good score earlier. Meanwhile, those from more vulnerable backgrounds or who have recently immigrated must build their credit history from scratch — which requires time, information, and financial discipline.
In an interview, journalist Dony De Nuccio, who lives with his family in Florida, reinforces: “In the United States, financial reputation is worth money. Knowing how to build a good score is almost a survival skill.”
How to Build a Good Score?
It all starts with basic credit cards and making payments on time. Keeping credit usage below 30% of the limit, never missing due dates, and avoiding too many credit applications at once are golden rules. Over time, these good habits build a strong financial history.
And don’t forget: your payment history is the most important factor in calculating your score. It accounts for about 35% of the total.
Conclusion: Credit Is Reputation — And Reputation Is Power
Having a good credit score is more than just a nice number on a report: it’s access, freedom, and savings. And even though the system has flaws and inequalities, it’s possible to understand it, take action, and improve your score with strategy.
