Your credit score is a number that gives a snapshot of your credit health. Having a 'bad' score could be a sign you're new to credit or you're repairing your finances after some difficulty.
When you apply for credit, lenders look at your credit file. They're checking for things like a healthy track record of making on-time payments. This is a sign of a good score. It shows you're likely to pay back any money you borrow.
With a 'bad' score, your track record could limit your options when it comes to borrowing money.
The good news is that you can improve a bad credit score with time and effort.
To find out more about improving your credit score for free, go to CreditWise.