What Is a Credit Score, and How Does It Work?

A credit score is basically a number that shows how you have handled borrowed money in the past. Lenders use it to judge how risky it may be to lend you money.

Things like paying bills on time, how much credit you use, how long you've had credit, and how often you apply for new credit can affect the score.

A higher score can make it easier to get loans or credit cards, sometimes with better interest rates. The exact scoring system depends on the country and credit bureau.