A low credit score is a numerical representation of an individual's or entity's ability to manage their debt. It is calculated based on various factors such as payment history, outstanding balances, types of credit and length of credit history. A low credit score indicates that the person has had difficulty managing their financial obligations in the past, making them a higher risk for lenders. This can result in higher interest rates or denial of loans, leases, or credit cards. Improving one's credit score typically involves paying off debts, reducing outstanding balances and demonstrating consistent payment history over time.