What's what in finances: Credit score

Your credit score is a number, calculated based on information in your credit report, that lenders use to assess the credit risk you pose and the interest rate they will offer you if they agree to lend you money. Most lenders use credit scores rather than credit reports since the scores reduce extensive, detailed information about your financial history to a single number.

Companies use a mathematical formula, called a 'scoring model', to create their credit score from the information in your credit report, and it predicts the probability that you will repay a loan on time. 

Some of the factors that make up a typical credit score are:

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