A credit score is a three-digit number that reflects your creditworthiness based on your borrowing and repayment history. Typically ranging between 300 and 900 (depending on the credit bureau), it serves as a financial report card for lenders, banks, and financial institutions. The higher your score, the more reliable you appear as a borrower.
Why It Matters:
Loan Approvals: Lenders use your credit score to decide whether to approve applications for credit cards, personal loans, home loans, or car loans.
Interest Rates: A higher credit score often translates into lower interest rates, saving you money in the long run.
Financial Opportunities: With a good score, you may qualify for higher credit limits, better loan terms, and premium credit cards.
Trust Indicator: Beyond banks, landlords and employers (in some cases) also review credit scores to evaluate responsibility and trustworthiness.
In essence, a credit score is more than just a number—it is a gateway to your financial freedom and stability. Maintaining it can give you an edge in achieving your personal and professional goals.
