What Is A Credit Score?

A credit score is a number which summarises the credit information from your credit report. Credit scores are an indicator of your credit risk and may be referred to by lenders or credit providers such as banks and credit card companies to help assess how responsible you are to lend to. Generally, a higher credit score is considered better as it indicates lower risk.  The better your credit score is, the more chance of a credit application being approved. Poor credit scores could hinder your ability to be approved for credit for everything from home loans to credit card accounts.

Your credit score may also influence the interest rate you get and the extent of the fees that the lender or credit provider charges. The better the credit score you have, the more competitive interest rates and fees you will be charged and therefore the more money you will save.