Putting it in simple terms, a credit score is a numerical rating that represents a person’s creditworthiness. Lenders use this score to assess how likely someone is to repay borrowed money on time. Scores range from 300 to 850, with higher scores indicating a stronger credit history and vice versa. Factors affecting a credit score include payment history, the amount of debt owed, length of credit history, and types of credit. A good credit score can help people get approved for loans, credit cards, and even better interest rates.