A credit score is a number that represents a person’s creditworthiness.
A person’s creditworthiness indicates whether or not he or she will be able to repay his or her debts. It’s a three-digit numeric summary of a person’s credit history that reflects their credit profile.
Defaulting on credit card bills and loan payments lowers your credit score while making all of your credit payments on time maintain a high credit score.
Banks use your credit score to determine whether you qualify for a loan and what interest rate you should pay.
As a result, if your credit score is poor, you are more likely to be asked to pay a higher interest rate on a loan than someone with a higher credit score.
A credit score of 700-749 is regarded good, and a credit score of more than 749 is regarded excellent.
The higher your credit score, the more likely you are to get approved for credit.
The score usually ranges from 300 to 900.
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