A three-digit number (usually between 300–850) that represents your “creditworthiness,” or how likely you are to pay your bills on time. Credit scores can influence if you will be approved for credit cards and consumer loans like auto loans and mortgages.
They can also influence the amount of interest you will pay on those loans. The higher your score, the better your credit — meaning you’ll pay lower interest rates.
Your credit score is impacted when you pay on time or late. You can always increase your credit score by making regularly scheduled payments on things like credit cards and loans. You can also help boost your score by having a good debt-to-income ratio. Generally, having debt that equals less than 35% of your annual income is considered positive.