Why is a Credit Score Important?
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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.
A credit score is calculated from a variety of data, including your credit history, credit utilization, and credit scores from other lenders. The higher your credit score, the lower your chance of being approved for a loan.
A good credit score is generally between 700 and 850. A bad credit score is generally below 600.
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 can mean that you will have a harder time getting a loan, and you may have to pay higher interest rates on a loan.
