What Is Credit Score? Meaning & Example
Definition
A credit score is a number that summarizes how reliably you have handled borrowing. Higher scores generally lead to easier approvals and lower interest rates.
Related terms
APR is the yearly cost of borrowing, including interest and certain fees, shown as a percentage. It helps compare loans and credit cards.
Debt AvalancheThe debt avalanche method pays minimums on all debts and puts extra money toward the debt with the highest interest rate first. It typically saves the most interest.
Interest RateAn interest rate is the cost of borrowing money or the reward for saving it, shown as a yearly percentage. Central bank rate decisions influence rates throughout the economy.
What is Credit Score?
A credit score is a number that summarizes how reliably you have handled borrowing. Higher scores generally lead to easier approvals and lower interest rates.
Can you give an example of Credit Score?
Paying bills on time and keeping card balances low tends to improve a credit score over time.