What is a Credit Score

We’ll talk a lot about your credit score here so it’s good to begin with a basic explanation of what it is and how it works.

Basically, a credit score is a numerical value various banks and credit card companies use to evaluate whether you are eligible to receive a loan or not. It’s based on a statistical analysis of your previous expenses and earnings.

There are also many other organizations which use credit scores to analyze “you”: mobile phone companies, insurance companies, some government departments and even your employers. That’s why it more important than ever that you inform yourself about your credit score and find out how you can improve it.

If you wish to learn more basics about the credit score Wikipedia is a good place to look, but for more detailed information stick around and read some of our other posts here.

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