Credit score

A numerical measure of a person’s financial trustworthiness that helps lenders assess how likely they are to repay on time and borrow responsibly.

Example

When someone applies for a loan, their credit score is often a key input in the lender’s decision. A high credit score, usually based on factors such as payment history, outstanding debt, and length of credit history, suggests the applicant has managed credit responsibly and is more likely to repay on time. A low credit score can lead to less favorable loan terms or a rejected application.