What a Credit Score Really Means

So, what is a credit score, really? At its simplest

level, think of it as an adult financial report card. But instead of grading

you on algebra or history, it’s grading you on how well you handle borrowed

money. It is a numerical prediction of risk. When a bank, a landlord,

or a car dealership looks at your score, they are asking one question: "If I lend this person

money, what are the odds they will pay me back on time?" A high score tells

them, "Don't worry, they're good for it." A low score tells

them, "Gambling on this person is risky." In the US, these scores generally