Understanding Your Personal Credit Score—What It Is and Why It Matters

Your personal credit score is a three-digit number that lenders use to assess your creditworthiness. It impacts your ability to get loans, credit cards, and even influences the interest rates you receive. The higher your score, the better your financial opportunities. Credit scores are determined by several factors, including payment history, credit utilization, length of credit history, types of credit in use, and recent inquiries. A strong credit score can save you thousands of dollars over your lifetime by securing lower interest rates on loans and credit cards. It can also be a deciding factor in renting an apartment or getting a job in certain industries. Understanding what affects your score is the first step toward taking control of your financial future