Credit Score and its Importance in the US | GyanDhan

Refresh your memory with those days where we get judged in schools and colleges by grades and numbers. While it was a moment of pride to patricians, for the rest of us, it happened to be a depressing period of trial. On similar grounds, a credit score is yet another number which is used to assess the creditworthiness of a person. In other words, it expresses how likely a person is to repay his/her debts. In the US, it also comes under the name FICO score, which ranges from 300 to 850 points in the order of the lowest to the highest. A score of 750 or more is considered good. It goes without saying that lenders are always in a state of risk as they invest a huge sum on borrowers. As a measure of security, they would want to know the credibility of a person in repaying the loan.

This is a companion discussion topic for the original entry at