Credit Scores Explained in 60 Seconds #shorts
2Credit Scores explained in 60 seconds. A credit score is a numerical representation of your creditworthiness, used by lenders to assess the risk of lending you money. It's calculated using your credit history, which includes factors like payment history, outstanding debts, length of credit history, types of credit, and recent credit inquiries. The most common credit scoring model in the US is FICO, with scores ranging from 300 to 850. Higher scores indicate lower risk and can lead to better interest rates and loan terms. To maintain a good credit score, it's essential to pay bills on time, keep credit card balances low, maintain a mix of credit types, avoid opening too many new accounts in a short period, and periodically check your credit report for errors. Subscribe for more financial tips!