What is a credit score?

A credit score is a number based on a analysis of a person's financial history, to appoint the credit-worthiness of that person. A credit score is based on information from credit report, typically assignable from credit bureaus.

Different lenders, such as credit card companies or banks, use credit scores value to assess the contingent risk posed by lending some loans to consumers and to extenuate losses due to bad debt. Lenders use this number to ascertain who qualifies for a debt, at what loan interest rate, and what credit limits.

Credit score is not only a value for banks. Other different organizations, such as insurance companies, employers, mobile phone firms, and government departments use the same methods.