Credit Scores
Most major financial purchases will require you to have a credit score. Lenders use credit scores to determine a borrower’s creditworthiness by evaluating how likely you are to repay a loan. Generally, the higher your credit score, the more favorable your loan terms and interest rates will be. If you have a bad credit score, it may be harder to qualify for a loan, credit card, mortgage, or even a car loan. Some of the factors used to determine your credit score include your credit utilization ratio, debt, payment history, and the length of your credit history.
Building Credit
Paying off your credit card balance in full, maintaining a good debt utilization ratio, and paying your debts on time can help build your credit score.
