Credit Score

A credit score expresses, as a number, how likely someone is to repay borrowed money on time. Systems vary by country, but they all compress your borrowing history into a single figure lenders can read at a glance.

The score is driven by payment history, how much you owe, how long you have used credit, and your card behaviour. Late payments weigh heaviest — even a small balance passing 30 days leaves a mark and drops the number sharply.

A low score means rejected applications or a much higher rate. On the same mortgage, the gap between scores can cost thousands a year in extra interest. It is invisible until it shows up in your payments.

Improving it is unglamorous: pay on time, keep card usage under about 30% of the limit, keep old accounts open, and avoid applying to many lenders in a short window. Reporting steady utility and insurance payments can help too. Scores recover over months rather than overnight. If a large loan is coming, start tidying your credit at least half a year in advance.