Credit Score

A credit score is a numerical representation of a borrower’s creditworthiness, calculated based on their credit history, including payment behavior, outstanding debts, and credit utilization. Ranging from 300 to 850, a higher score indicates better credit reliability and can result in more favorable loan terms and interest rates. Credit scores are crucial for assessing borrower risk, setting loan conditions, and determining eligibility. 

Monitoring credit scores helps lenders make informed decisions and manage potential financial risks effectively.