Credit Bureaus (there are three: Equifax, Trans Union and Experian) collect data from lenders and create a report. Everyone who uses credit to make purchases has a credit report. This report includes personal data like your address, borrowing and payment history. It also records when you apply for credit and which companies look at your report.
Your credit score measures your risk level with a proprietary scoring system. The most common scoring system in the FICO® credit score. This was established by the Fair Isaac Corporation and is the most recognized scoring system in the US, being used by approximately 90% of lenders.
Credit scores range from 300 to 850. Those with credit below 600 have difficulty getting loans and will pay high interest rates for the privilege. Those between 640 and 700 have average credit and can obtain loans with good interest rates, though they may have to have assets, prove reliable income and have larger down payments. Those with scores 740 and above, are considered to have excellent credit and generally do not have trouble being approved for credit.