credit score analysis

A credit score is a numerical representation of an individual's creditworthiness, typically ranging from 300 to 850. It reflects how likely a person is to repay borrowed money based on their credit history, which includes factors like payment history, amounts owed, length of credit history, types of credit used, and recent credit inquiries. Lenders use credit scores to assess risk when considering loan applications. A higher score generally indicates better credit management and may lead to lower interest rates, while a lower score can restrict borrowing options and result in higher costs.