Credit scores are three-digit numbers that reflect your financial behavior and creditworthiness. Most credit scoring systems—like FICO—use a scale that ranges from very poor to exceptional, with each tier influencing how lenders assess your risk. Lenders use your score to decide whether to approve loans, determine interest rates, and set borrowing limits. While ranges vary slightly between models, most fall into categories like fair, good, very good, and excellent. Your score is influenced by factors such as payment history, credit utilization, length of credit history, new accounts, and credit mix. Higher scores typically lead to better borrowing terms, while lower scores may result in higher interest rates or denial of credit. Whether you're applying for a credit card, mortgage, or car loan, understanding how scores work empowers you to manage your financial future and avoid costly mistakes that could hurt your credit standing.