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.

Detailed explanation-2: -A higher score increases a lender’s confidence that you will make payments on time and may help you qualify for lower mortgage interest rates and fees.

Detailed explanation-3: -“Your credit score is one factor that can affect your interest rate, ” according to the CFPB. “In general, consumers with higher credit scores receive lower interest rates than consumers with lower credit scores.”

Detailed explanation-4: -A credit score ranges from 300 to 850 and is a numerical rating that measures a person’s likelihood to repay a debt. A higher credit score signals that a borrower is lower risk and more likely to make on-time payments.

Detailed explanation-5: -“We’ll use that median score as the qualifying credit score, ” says English. “Not the highest or lowest.” If two of the three scores are the same, lenders use that one, regardless of whether it’s higher or lower than the other one.