It’s important to have a good credit score — but you might not know exactly what your credit score is, how it’s calculated or how it affects you. Your credit score, in a nutshell, is a snapshot of your credit history.
Lenders use your credit score to see what kind of borrower you are. If you have a high score, financial institutions will see you as a good — or low-risk — borrower, which means you’ll likely get better interest rates on loan products. If you have a lower, or even a bad credit score, you might be viewed as a credit risk.
