Why is the Credit Score Important?
The credit score is a numerical expression that represents the credibility of an individual. A credit score is based on a credit report and information that are sourced from several credit bureaus.
Similarly, the score is based on credit history that includes the number of active accounts, total debts, repayment history alongside other factors. When an individual needs a loan, the lender first has a look at the credit score for evaluation.
If the credit score is above 750, then the request or application for the new loan is approved. Besides, the lender will also analyze other factors to determine credibility.
This is why maintaining a good credit score is the safest way to improve your chances of approval. On the other hand, if the score is way too lower, credit score check then the lender might directly reject the application without looking at any other factor.
As a matter of fact, the credit score is not the only thing that the lender evaluates before approving a requested loan. They also consider your debt to income ratio, profession, employment history, and more factors before they go ahead to approve or disapprove the request.