A credit score is based on credit history that represents the likelihood of you paying your bills on time.
Credit scores range from 300 to 850 and are calculated using your payment history, debt level, and credit history.
Lenders use your credit score to help them determine whether they should offer you a loan or a credit card.
As an overview, credit scores of 580-669 are considered fair, 670-739 good, 740-799 very good and 800+ excellent.
Different lenders have different terms and conditions when giving you access to credit cards or loans.
Lenders refer to a credit report for information on your repayment and credit utilization to review your score.
There are three major bureaus that creditors use to generate your credit report: Equifax®, Experian®, and TransUnion®.
If you have a lower score (580 or less), it may be difficult for you to get a credit card or a good loan offer.
To improve your credit score, you need to pay your bills and loans on time, and use your credit cards wisely.