Your credit score is one of the most important numbers in your financial life, affecting your ability to get loans, secure low-interest rates, and even rent an apartment. But how exactly does it work, and what steps can you take to improve it? Let’s break it down.
A credit score is a three-digit number that represents your creditworthiness, or how likely you are to repay borrowed money. It’s based on your credit history and helps lenders decide whether to approve your applications for credit cards, loans, and mortgages.
Common Credit Score Ranges (FICO Score):
Your credit score is calculated based on several factors:
Your credit score is a powerful financial tool, and understanding how it works can help you take control of your financial future. By maintaining good habits—paying on time, keeping balances low, and being mindful of credit usage—you can build and maintain a strong score.
Have questions about your credit or need tips on improving it further? Let’s talk!