credit score

The Credit Score is a numeric value, which represents the credit risk of a borrower. The credit score is calculated depending on the credit history of the borrower. If you have a good credit history (no late credit payments, no defaults, etc.) you will have high credit score. The credit score simply represents the risk that the financial institution takes when lending you money. The higher your credit score, the higher the chances for you to repay the loan. Your credit score will also affect the interest rate that the lender charges you. If you have a good credit score you will get lower interest rate on the loan, simply because your loan is relatively less risky.