Credit scores are numbers, each summing up how well you handle money, repay debts, and use credit, based on payment history, debt, and time. Banks use these external scores or internal ones, sometimes adding open banking data (like transactions) with your consent. They group you into risk tiers for products—higher scores mean better rates, lower scores cost more—not always pure risk-based pricing. Credit scores matter for credit because they help lenders decide if you’re reliable enough to borrow money and at what cost. It varies by country and lender.

Any time you apply for credit, the lender will use internal and external information to calculate risk. As part of their processes, they apply rules and scores in their systems to match your calculated risk to a suitable product which uses these scores to match the risk to a price. If the risk is acceptable they will 'accept' and grant the credit. If not then they may decline or offer a different product for a higher risk. You should have been asked for your consent to use the information and data.