What is a Credit Score?
A credit score is a number that lenders use to determine a borrower’s creditworthiness. A good credit score means a lower chance of being approved for a loan, while a bad credit score means a higher chance of being approved.
Credit scores are important because they are one factor in a credit evaluation. A good credit score means that you are a low-risk borrower and that lenders are more likely to give you a loan. A bad credit score means that you are a high-risk borrower and that lenders are more likely to charge you high interest rates and refuse to give you a loan.
