Credit Score

A Credit score is a numerical representation of a person’s Creditworthiness, typically ranging from 300 to 850. It is based on the information in an individual’s Credit-report/">Credit Report, which includes their Credit history, outstanding debts, payment history, types of Credit accounts, and recent Credit inquiries. Lenders use Credit scores to evaluate the likelihood that a borrower will repay their debts.

For example, a Credit score of 720 is generally considered good, indicating that the individual is likely to repay loans on time. In contrast, a score of 580 may be seen as poor, suggesting higher risk to lenders.

In a case where an individual has a high Credit score, they may qualify for lower Interest Rates on mortgages or personal loans. Conversely, someone with a low Credit score might be denied Credit or offered loans with higher Interest Rates to offset the risk of default.