ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -If you have a good credit score, you have a much better chance of qualifying for the best interest rates, which means you’ll pay lower finance charges on credit card balances and loans. The less you pay in interest, the sooner you’ll pay off the debt, and the more money you’ll have for other expenses.

Detailed explanation-2: -A strong credit score-760 and above-may give you important financial advantages, including access to more options, lower interest rates, and more lender choices.

Detailed explanation-3: -A higher credit score signals that a borrower is lower risk and more likely to make on-time payments. Credit scores are often used to help determine the likelihood someone will pay what they owe on debts such as loans, mortgages, credit cards, rent and utilities.

Detailed explanation-4: -Although Experian is the largest credit bureau in the U.S., TransUnion and Equifax are widely considered to be just as accurate and important. When it comes to credit scores, however, there is a clear winner: FICO® Score is used in 90% of lending decisions.

Detailed explanation-5: -Very poor: 300 to 579. Fair: 580 to 669. Good: 670 to 739. Very good: 740 to 799. Excellent: 800 to 850.