what is meant by credit score

A credit score is a three-digit number that represents your creditworthiness to lenders.

• It is typically a score between 300 and 900, such as the CIBIL score in India.
• The score is calculated from your credit history, including your payment record and the total amount of debt.
• Lenders use this score to assess the risk of offering credit and to determine interest rates and loan limits.
• A higher score indicates a healthier financial profile and greater likelihood of loan approval.