It’s a system lenders use to assess your creditworthiness. Your score is calculated based on factors such as the following:
- Credit history
- Payment history
- Debt levels
- Credit mix
- New credit applications
- Credit utilisation
High scores demonstrate that you use credit responsibly, which makes you a more favourable candidate for loans. Low scores, however, may signal higher risk to lenders as it suggests you can’t be trusted with large loans.