A credit score is a number that is calculated based on an individual’s credit history to give lenders a quick and less subjective way to evaluate the credit history of loan applicants. This number helps the lender identify the level of risk they may be taking if they lend to someone. The system awards points based on information in the credit report, and the resulting score is compared to that of other consumers with similar profiles. With this information, lenders can predict how likely someone is to repay a loan and make payments on time.
