Your credit score is calculated using your credit history, which contains information such as your payment history, the number of loans or credit cards used by you, etc. The number helps lenders evaluate how creditworthy you are, namely, how much of a risk it is to lend you money; in short, how responsible you are with your finances. The score is largely based on your outstanding credit, payment history, and public records. A high credit score increases your chances of getting a loan or credit card, and a low score completely ruins it. Banks and lenders do not like to give loans or credit cards to people with low scores because they do not trust them with their money.