What is credit score and why it's important?

A credit score is a numerical representation of an individual’s creditworthiness based on their credit history. It is important because:

– Lenders use it to determine the risk of lending money to an individual.

– It affects the interest rates, loan approval, insurance premiums, and even job opportunities for many individuals.

Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Regularly monitoring and improving one’s credit score is crucial for financial well-being. If you have any other questions about credit scores or need tips on improving yours, feel free to ask!