Credit score is vital for determining a person's debt repayment reliability. Factors like payment history and credit utilization impact creditworthiness. Higher credit scores lead to improved loan approval chances and favorable interest rates.
Credit score is what helps in determining the reliability of a person with regard to repaying debts. It is a number assigned based on credit history to assess the riskiness of lending money. Lenders use this score to make decisions on loan approvals and interest rates.
Factors such as past credit accounts payment history, amounts owed, and credit utilization play a crucial role in shaping an individual's creditworthiness. Maintaining a good credit score is essential for obtaining favorable loan terms and financial opportunities.
By having a high credit score, individuals demonstrate responsible financial behavior, which increases the likelihood of being approved for loans and receiving better interest rates, ultimately saving money in the long run.
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