Credit Score

A credit score is a number that helps lenders judge how likely a person is to repay borrowed money. In simple terms, a credit score shows how trustworthy someone looks as a borrower. Credit scores are important because they can affect whether someone can get a loan, credit card, mortgage, or apartment lease. A higher credit score may help a person get approved more easily and receive lower interest rates. For example, if someone pays bills on time, keeps debt under control, and uses credit responsibly, their credit score may improve. A credit score is not the same as income. Income shows how much money someone earns, while a credit score shows how they have managed borrowing and payments.