DayCents

Credit Score

A credit score is a three-digit number (usually 300–850) that predicts how likely you are to repay borrowed money. Lenders use it to decide whether to approve you and what rate to charge — a higher score can save tens of thousands in interest over a mortgage or auto loan.

The biggest factors are payment history and credit utilization (how much of your available credit you use), followed by account age, credit mix, and new inquiries. Scores of 740+ generally unlock the best rates; below 620, borrowing gets expensive or difficult.