Consumer Credit Score

A consumer credit score is a three-digit number that reflects an individual’s creditworthiness, indicating how likely they are to repay borrowed money. This score, typically ranging from 300 to 850, is based on factors such as payment history, credit utilization, length of credit history, types of credit accounts, and recent credit inquiries. Lenders use it to evaluate the risk of lending money or extending credit. A higher score usually results in better loan terms and lower interest rates, while a lower score can make borrowing more expensive or challenging. Maintaining a good credit score is vital for financial health.