Credit Scores

Creditors use credit scoring systems to figure out if you’d be a good risk for credit cards, auto loans, and mortgages. Phone companies and companies selling auto insurance and home insurance also use credit scores along with other factors to decide whether to sell you a policy or service. Credit scores also can affect the terms of the credit you’re offered. Having a higher credit score means businesses see you as less of a financial risk, which means you’re more likely to get credit or pay less for it.