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Reputation is a measure of how much a faction likes the player. Reputation levels range from -30 to +30. Gaining reputation is non linear above 0 and it will take exponentially more actions to continue to gain reputation. Below 0 reputation gains linearly with +1 reputation rewarded per enemy faction kill.

Reputation LevelFaction ColourLicensesDiscountsOther Effects
30BlueFree trade subscriptionBest buy/sell pricesUnlocks "Friends in High Places" achievement
27 and aboveBlue  

Faction paintmods unlocked as options for default ship paints

Ability to teleport to allied faction stations

Allied faction ship orders visible without scanning and in the map interface

20 and aboveBlue

Capital ship license

Capital equipment license

Advanced station blueprint purchase access

Trade subscription (10,000Cr - 10,000,000Cr)

9-12% discount on buying goods

Reputation Ceremony

Considered an "ally" to the relevant faction

Terran Protectorate Only: Inner core access

10 and aboveBlue

Military ship license

Military equipment license

Intermediate station blueprint purchase access

Police license (156,000Cr)

~5% discount on buying goods

Reputation Ceremony

Considered a "friend" to the relevant faction

Access to faction guild(s)

Terran Protectorate Only: Outer core access

-9 and aboveBlue

Civilian ship purchase privileges

Basic station blueprint purchase access

 Docking and trade privileges
-19 and abovePink  Ships/stations will not attack any player ships (pirate factions are an exception)
-24 to -20Red  Ships/stations will attack all player combat ships
-30 to -25Red  Ships/stations will attack all player properties (ships and stations)

Source for level 30: