It is confusing, intimidating, and misunderstood.
What is IT? CREDIT.
According to Investopedia.com, the definition of a Credit Score is:
A FICO score is the most widely used credit scoring system. FICO is an acronym for Fair Isaac Corporation, the company that provides the credit score model to financial institutions. There are other providers of credit scoring systems as well. Consumers can typically keep their credit scores high by maintaining a long history of always paying their bills on time and not having too much debt.
A credit score plays a large role in a lender's decision to extend credit and under what terms. For example, borrowers with a credit score that is under 600 will be unable to receive a prime mortgage and will typically need to go to a subprime lender for a subprime mortgage, which will typically have a higher interest rate.
Having great credit is necessary if you intend to buy a house. Educate yourself, take charge of your credit and don't be fooled by these myths!