CREDIT SCORE

A credit score is a numerical representation of an individual’s creditworthiness, based on their credit history. Ranging typically from 300 to 850, a higher score indicates a better credit history and lower risk to lenders. Factors influencing a credit score include payment history, amounts owed, length of credit history, types of credit used, and new credit inquiries. Credit scores are crucial for obtaining loans, credit cards, and favorable interest rates. Maintaining a good credit score can lead to better financial opportunities and savings on interest payments.