A credit score is a 3-digit number that predicts how likely someone is to repay their debts on time. It’s calculated using a mathematical formula that analyzes a person’s credit history, which includes information such as repayment history, total credit balance, number of loans and credit cards, credit utilization, and more.
Financial institutions use credit scores to make decisions about lending money, offering credit, and other financial services. For example, if you go to a bank to...