Finance
What is A credit score?
A credit score is a number that summarizes how reliably you repay borrowed money. Lenders use it to decide whether to give you a loan or card, and at what interest rate.
See it, don’t just read it.
Watch a 2-minute lesson with voice + animation that explains a credit score.
Key things to understand
- 1It's calculated from your borrowing and repayment history.
- 2Key factors: payment history, amounts owed, length of history, new credit, and credit mix.
- 3A higher score means lower risk to lenders — so better rates and approval odds.
- 4Paying on time and keeping balances low are the biggest levers.
Frequently asked questions
- How can I improve my credit score?
- Pay bills on time, keep credit-card balances low, avoid too many new applications, and maintain older accounts.
- What is a good credit score?
- It depends on the scoring model, but generally higher is better; lenders treat the upper ranges as low-risk.
- Why do lenders use credit scores?
- To quickly estimate the risk that a borrower won't repay, which sets approval and interest rates.