Your credit scores can play a role throughout your life -- like the process of buying a home, getting a job or determining what loans you're offered -- and at what terms. That's why knowing the ins and outs of your credit scores can be essential to understanding your personal finances.

If you’ve tried to make a large purchase such as a home or a vehicle, or even open a credit card account, you likely know the important role your credit scores play in lending decisions. When you apply for credit, your credit scores and the information in your credit reports, along with other criteria, are used by lenders and creditors as part of their decision-making process when evaluating your application.

A credit score is a number lenders use to help them decide how likely it is that they will be repaid on time if they give a person a loan or a credit card.

For a score with a range between 300-850, a credit score of 700 or above is generally considered good.