Credit Scoring

Credit scoring is a method lenders use to evaluate how likely you are to repay borrowed money. It involves analyzing your financial history, such as your payment records, debt levels, length of credit history, types of credit used, and recent applications. These factors are combined into a score, typically ranging from 300 to 850. A higher score indicates lower risk, making it easier to qualify for loans and better interest rates. Essentially, your credit score provides lenders with a quick, objective way to assess your creditworthiness based on your financial behavior.