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A credit score is a three-digit number that helps lenders decide how likely you are to repay borrowed money. It's based on your credit history.
In Depth
Your credit score is a numerical representation of your credit history, based on information from your credit reports. It's used by banks, credit card companies, and other lenders to assess the risk of lending you money. A higher score generally means you're seen as a lower risk, which can lead to better interest rates and easier approval for loans and credit cards. Factors like payment history, amounts owed, length of credit history, and new credit all influence your score.
Example
Because Sarah had an excellent credit score, she qualified for a lower interest rate on her new car loan.