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Your credit score determines your worthiness and risk rate to lenders, or anyone looking to give you credit. Which can include a monetary loan, an asset, a rental, or a license. It also indicates your overall credit health. While your score is not the only factor that a lender considers when approving you for a loan, it is a major factor. Typically, the higher your score is the lower risk you are to miss payments or default on the loan. So, those who have higher scores are usually offered more competitive interest rates and loan terms.
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