Your credit score is a number that reflects how you spend and pay back your money. Banks and lending companies use this number as one of the factors to decide how much they will charge to lend you their money. The higher your credit score, the better your chance of getting a loan.
Most of these scores are produced by the Fair Isaac Company, who collects credit information to come up with a credit score they call a FICO score. Credit score numbers range from about 350 (very low) to more than 800 (high).
Your credit score is used to compare you to other people who are looking for loans. You probably don’t need to know your credit score if you have already looked at a copy of your credit report, as it’s mainly used by banks to answer some of these questions: