What is true about credit scores?

Credit scores are numerical representations of an individual's creditworthiness, typically ranging from 300 to 850. They are calculated based on factors such as payment history, amounts owed, length of credit history, new credit, and types of credit used. A higher credit score generally indicates a lower risk to lenders, which can lead to better loan terms and interest rates. Monitoring your credit score regularly can help you maintain good credit health and address any inaccuracies promptly.