What does a credit score actually measure?

What a score is

A credit score is a number that lenders use to estimate how likely someone is to repay borrowing, based on their credit history. There are different scoring models, so a person can have more than one score, and the exact calculations are not public.

It is a summary of patterns in your credit behaviour, not a judgement of your worth.

The factors generally considered

Common factors include whether payments are made on time, how much of available credit is being used, the length of credit history, the mix of credit types, and recent applications. Paying on time and keeping balances modest relative to limits are widely described as the most influential habits.

Because models differ, treat these as general directions rather than a precise formula.

What a score does not include

Scores are based on credit information. Things like income, savings or everyday spending are not part of the score itself, though a lender may look at them separately when making a decision.

This article is general educational information about money management. It is not financial, investment, tax or legal advice, and it is not a recommendation of any product. Rates, terms, fees and rules vary by provider, product and country, and can change; confirm the specifics for your own situation, and where needed, with a qualified professional.