Undergraduate schools use ACT scores in several ways, including making admissions decisions, assisting in course placement, aiding academic advising, and providing loans and scholarships. Undergraduate schools make admissions decisions based on ACT scores, high school grades, participation in extracurricular activities, and any other information that can provide an insight into the candidate's goals and potential success.

ACT scores can be used to assist college administrators in placing first-year students in the most suitable course section. Most colleges have remedial, regular, and advanced levels of courses. By reviewing ACT scores, colleges can assess which one of these three areas would most benefit a first-year student.