A credit score is a numerical expression based on a statistical analysis of a person's credit history, to represent the credit worthiness of that person. A credit score is primarily based on credit report information typically sourced from credit bureaus.

Lenders, such as banks and credit card companies, use credit scores to evaluate credit worthiness. Lenders use credit scores to determine who qualifies for loan, at what interest rate, and what credit limits. Lenders, also use credit scores to determine which customers are likely to bring in the most revenue. the use of credit or identity scoring prior to authorizing access or granting credit is an implementation of a trusted system.

Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments may employ the same techniques.

We depend on credit for so many important things in life whether it's for buying a car, house or computer or getting a student loan. A three-digit number -- your credit score -- can determine whether you can do these things and even how much it will cost you.

How can a simple number determine whether you can buy a house or car? If you have read How Credit Reports Work, you know that your credit report contains a history of how you have paid your bills, how much open credit you have, and anything else that would affect you.