Why Your Credit Score Matters: Key Facts Everyone Should Know in 2025
Understanding Credit Scores: Definition and Importance A credit score is a numerical representation of a person’s creditworthiness. It’s a three-digit number that lenders use to assess the likelihood of someone repaying a loan. This score is based on a variety of factors, including payment history, amounts owed, length of credit history, types of credit, and new credit. The primary purpose of…