Why is it Better to Have a High Credit Score than a Low One? Answer Explained
by Niranjani
Updated Oct 17, 2023
Why is it Better to Have a High Credit Score than a Low One?
Having a high credit score is like having a golden ticket. It means you can probably get the best deals when you borrow money. This includes lower interest rates and fewer extra charges for things like credit cards or loans.
For instance, if you're getting a home loan, a good credit score could save you a lot of money. You might pay 1% less in interest, which can be a big deal when you're buying a house. So, a high credit score is like having a key to getting loans at a lower cost.
Credit Score
Your credit score is like a grade that shows how good you've been with borrowing money. It's determined by looking at your financial history, including things like how many accounts you have, how much you owe, if you pay your bills on time, and more. Lenders use this score to decide if you're a safe bet to pay back the money they lend you on time.
Why is it Better to Have a High Credit Score than a Low One -FAQ
To have high credit score you may probably get the best deals when you borrow money.