A credit score is a number and a measure that determines the creditworthiness of a person and his reliability to repay credit by taking into account the individual's credit history.
Credit score takes into consideration whether the past debts are repaid, is there any new debt and also considers the new earnings.
This score changes based on how much debt an individual incurs and how he handles his payments and bills.
The organizations that lend money such as credit card companies and banks use credit scores to decide if a customer meets the criteria for a loan.
Credit score also helps them to evaluate that at what interest rate a customer should be given loan and it also helps the lenders to specify the credit limits for a customer.
Credit score enables lenders to assess the risks that are likely to be caused by lending money to a customer (if the customer will repay the debts/credits).
It also helps to specify the customers that can provide the most profits.
Higher credit score means that an individual is more creditworthy.
