Understanding your credit score and how to improve it
[Image: Wikipedia] This article discusses the importance of understanding your credit score, how it is calculated, and provides tips on how to improve it. Introduction Your credit score plays a significant role in your financial life. It is a three-digit number that represents your creditworthiness and helps lenders decide whether to approve your loan or credit card application. Having a good credit score means you're more likely to get approved for credit with favorable terms and interest rates. On the other hand, a poor credit score can lead to higher interest rates, fees, and even rejection of your loan application. Therefore, it is essential to understand your credit score and take steps to improve it. In this article, we'll discuss how credit scores work, what factors affect them, and what you can do to improve your credit score. What Is a Credit Score? A credit score is a number that ranges from 300 to 850 and represents your creditworthiness. Credit bureaus calculate y...