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Importance of your credit score

  • Updated

Your credit score reflects your financial responsibility. It is an indication to credit lenders of the risk associated with providing lending products to you.

Credit scores and credit lenders

Your credit score represents how you have managed your current credit products. A better credit score represents better financial responsibility and payment history. 

Credit lenders can include mortgage lenders, credit card issuers, and auto dealerships. 

Lending credit products to someone with a lower credit score is typically riskier. With a lower score, you may be charged a higher interest rate or denied credit. 

Your credit score can prevent you from getting the credit you need to make large purchases.

Understand and build your credit 

What is a credit score?

Your credit score is a three-digit number that determines your credit risk and reflects your payment history. Here’s how to understand what ‌is a credit score.

Calculate your credit score

Your credit score is calculated by considering a lot of factors. Your credit file keeps a report of payment history, credit utilization, and much more. Here’s how to understand calculating your credit score.

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