A credit score is a number used to represent how good or bad your credit is. The credit bureaus issue a number on the credit score scale. The higher a number is, the better your credit, and conversely, the lower the number the worse. Lenders and companies you deal with who will be affected by how you handle your scheduled payments, such as apartment leasing offices, may look at this score as a rough indicator of how trustworthy you are and how much they will be able to count on you to make your payments on time.
The score is given based on details present in your credit report such as what percent of your payments have been made on time, how much money you already owe to other companies, how many such companies you currently owe money to, and how many payments have been missed entirely. It takes into account not only your history with credit card companies but also factors such as whether you have been late on other types of scheduled payments and whether you have ever declared bankruptcy.
Generally, if you have a lower credit score, you will have fewer options available to you in terms of available new credit. Interest rates offered to you will be higher or you may be denied credit entirely. For example, if you have poor credit, car loan rates can be up to 20% higher, or even more! You may need to put a higher deposit on a rental or be denied the opportunity to rent entirely, whether it comes to an apartment or a vehicle. In order to be eligible for the most and best credit opportunities and be seen as a financially responsible party, you will want to get your credit score as high as possible. There are a number of means of doing this which you can find readily available information on. These generally involve cleaning up your past track record by arranging plans to pay off outstanding loans, and keeping a good current record by always making all your currently scheduled payments on time. Any way you can increase your credit score level can only benefit you now and in the future.