Your credit score is a three-digit number. It represents your history of loans and repayment. Therefore, it’s the number that most lenders use to determine whether or not to lend money to you.
Your credit score is based on a variety of factors, including:
The length of your credit history
Your on-time payments vs. late payments
The types of loans that you have
The amount of money that you owe on those loans
How much credit you have
If you have a good credit score, then you’re more likely to be able to borrow money. Moreover, you’ll get better rates. The worse your credit score, the harder it is to get a loan, and the more you’ll pay in interest when you do find a lender.