A personal credit score is a numerical representation of an individual's creditworthiness, typically ranging from 300 to 850. It is calculated based on factors such as payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries. Lenders use this score to assess the risk of lending money or extending credit to a borrower. Maintaining a good credit score is important for securing loans, mortgages, and credit cards with favorable terms. A higher score can lead to lower interest rates and better borrowing options, while a lower score may result in higher costs or difficulty obtaining credit.