The credit score in your credit report is a numerical value assigned to an individual that measures their ability to repay debts. This score is typically calculated by specialized agencies such as Equifax or TransUnion.
Several factors are used to evaluate your credit score, including your payment history, length of credit history, total number of open accounts, account balances, and total amount of outstanding debt. Most lenders examine credit scores to determine if a person is eligible for a loan and at what interest rate they can obtain the loan. Scores generally range from 300 to 900, and the higher the score, the easier it will be for you to secure a long-term loan with favorable interest rates.
Please also refer to the definition of ”Credit rating” for more information.