How credit scores affect borrowing and interest rates
When it comes to borrowing money and getting favourable interest rates, your credit score plays a significant role. Your credit score is a three-digit number that represents your creditworthiness to lenders. It is a reflection of your past borrowing and repayment behaviour.
A good credit score can open doors to better loan terms and lower interest rates, saving you money in the long run. On the other hand, a poor credit score can make it challenging to secure loans or force you to accept higher interest rates, costing you more in interest payments over time.