Written by: Chris O’Shea

How lenders view in your credit score.

Your credit score is important to lenders, but there are several things that a lender or bank considers when looking at your score. Here’s the breakdown.

Creditworthiness

The biggest thing lenders and banks look at your score for is to determine your creditworthiness. If you have a high score, it indicates to them that you can handle debt and pay down balances responsibly. The higher your score, the less of a risk you are to lenders.

Interest rates

How high or low your credit score is determines how high or low your interest rates are. If you have a high score, you will be offered products with lower rates than someone who has a low credit score.

Credit limits

Banks and lenders also consider your credit score when setting your credit limits. The higher your score, the more likely you are to be able to handle high credit limits.

Loan terms

 If you have a high credit score, you are more likely to get favorable repayment conditions and terms on a loan. 

Do One Thing

Make sure your credit score is as high as possible to get the best rates, terms, and limits on the financial products available.