A credit score is a number that is used by creditors to decide whether to give you credit. It is supposed to help predict how likely it is that you will repay a loan and make the payments on time.

There are different types of credit scores, but the term usually refers to a score created by one of the "Big 3" credit bureaus (Experian, Equifax, and TransUnion). 

A credit score is usually a number between 300 and 850. The higher the number, the better your credit rating, and the easier it will be for you to get credit. The score is based on different factors, such as:

• Your bill-paying history,
• The number and type of accounts you have,
• Late payments,
• Collection actions,
• Outstanding debt, and
• How long your accounts have been open.

How is the number determined?

To determine credit scores, credit bureaus use credit scoring models. These models give different levels of importance to the factors listed above. The model takes this information into account and comes up with a number, which is your credit score. A higher number is better because it indicates that you are more likely to repay a debt on time.

A creditor also can develop its own internal system for generating scores. For example, a creditor could choose its own factors to consider instead of the factors listed above. The term "credit score" usually does not refer to a score that comes from a creditor's own internal system.

A credit scoring system may not base its calculation on certain traits. These traits include race, sex, marital status, national origin, and religion.

Use your credit score as a general guide to understand your financial health. Your credit score helps measure the steps to take to improve your credit history. Improving your credit report will improve your credit score.

Knowing and understanding your credit score can be helpful when you apply for a loan. Many lenders look at credit scores when they make loan decisions.

More information is available here on the importance of your credit history.