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Credit Score

Lending

A Credit Score is a numerical representation of a consumer's creditworthiness based on information in their credit history. Lenders use credit scores, along with other financial data, to evaluate lending risk, determine loan eligibility, and help establish interest rates, credit limits, and loan terms.

Credit Scores are calculated using factors such as payment history, credit utilization, account age, credit mix, and recent credit inquiries.

Why it matters for financial institutions

Credit Scores help financial institutions make consistent, data-driven lending decisions while balancing growth and risk. They support underwriting, pricing, and portfolio management by providing insight into a borrower's likelihood of repaying debt, improving efficiency and credit risk assessment.