21 mar If you’re shopping around for private student loans, you’ve probably encountered questions about your “credit score
” Your credit score is a three-digit number that summarizes information about your credit history, which is available in your credit report.
To better understand how your credit history and credit report are used to calculate your credit score, let's first address the question: What does a credit score mean?
What is a credit score?
A credit score is a calculation that indicates the likelihood that you will repay a loan in full and on time. In other words, your credit score is a “grade” for your “creditworthiness.”
This can affect not just the amount a creditor is willing to lend you, but your interest rate on that amount, which affects the total cost of your loan. For example, lower credit scores tend to receive higher interest rates, which means you'll pay more in interest charges over the life of your loan.
