Define ‘credit score’.

A credit score is best defined as a numerical representation of a consumer's creditworthiness. This score, typically ranging from 300 to 850, encapsulates an individual's history of borrowing and repaying debts, which helps lenders assess the risk of lending money or extending credit to that consumer. A higher credit score indicates that a borrower is seen as reliable and likely to repay their debts, while a lower score could suggest potential risk factors.

The significance of a credit score extends to various financial decisions, influencing loan approvals, interest rates, and even rental applications. Understanding this concept is essential for consumers, as it directly impacts their ability to access credit and the terms associated with it.