What Is a Credit Score?

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A credit score is a three-digit number that represents your creditworthiness. It tells lenders how likely you are to repay debt on time. The most common type is the FICO Score, which ranges from 300 to 850:

  • 300–579: Poor

  • 580–669: Fair

  • 670–739: Good

  • 740–799: Very Good

  • 800–850: Excellent

A higher score means you’re more likely to be approved for loans or credit and get better interest rates.

Why Does Your Credit Score Matter?

Your credit score affects more than just loans. It can impact:

  • Interest Rates – Higher scores = lower interest

  • Loan Approval – Lenders use it to assess risk

  • Renting a Home – Landlords may check your credit

  • Job Applications – Some employers review credit reports

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