A credit score is a numerical representation of a person's creditworthiness, typically ranging from 300 to 850. It is calculated based on factors such as payment history, amounts owed, length of credit history, types of credit used, and new credit inquiries. Lenders use this score to assess the risk of lending money or extending credit to an individual. A higher credit score indicates better creditworthiness, making it easier to obtain loans or credit cards with favorable terms. Conversely, a lower score may result in higher interest rates or difficulty in securing credit. Regularly checking and managing your credit score can help maintain financial health.