If you own a credit card, you should know what a credit score is. A credit score is a three-digit number that represents your creditworthiness or ability to pay off a loan. This is based on the information in a credit report. Credit scores range from 300 to 850, with 850 being the highest. The higher your credit score is, the better. Banks, insurance companies, and other financial institutions look at a person’s credit score, among other things, to assess a borrower’s credit risk.