What Is a Credit Score and Why It Matters
In today’s world, your credit score is more than just a number—it’s your financial reputation. Whether you're applying for a loan, renting an apartment, or even getting a job, your credit score can have a huge impact on your opportunities. But what exactly is it, and why does it matter so much? 📊 What Is a Credit Score? A credit score is a three-digit number that reflects how trustworthy you are with borrowed money. It’s calculated based on your credit history, including how much you owe, how timely you pay your bills, and how long you've had credit. The most common credit score in the U.S. is the FICO® Score, which ranges from 300 to 850: 800–850: Excellent 740–799: Very Good 670–739: Good 580–669: Fair Below 580: Poor 🧠Why Is It Important? Your credit score affects: ✅ Whether you get approved for a credit card, loan, or mortgage ✅ The interest rates you're offered (higher score = lower rates) ✅ The amount of credit available to you ✅ Rental applica...