what is credit score used for

A credit score is primarily used by lenders, such as banks and credit card companies, to evaluate your creditworthiness. This three-digit number, like the popular CIBIL score, helps predict how likely you are to repay debt on time. Lenders rely on it to make decisions on loan, mortgage, or credit card approvals and to determine the applicable interest rate and credit limit you will be offered. A higher score generally results in more favorable credit terms.