A credit score is a numerical representation of an individual’s creditworthiness, reflecting their likelihood of repaying debts. It acts as a tool that lenders and financial institutions use to assess the risk associated with extending credit to a person. Factors such as payment history, credit utilization, length of credit history, credit mix, and new credit applications all contribute to determining a credit score. Higher credit scores indicate better creditworthiness and increase the chances of obtaining favorable interest rates and loan approvals. By understanding credit score
