If I have a lot of money in the bank then does credit score even matter? Generally confused as now I feel it’s getting crazy some of the prerequisites required to rent or finance or put money down.
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It’s a score telling lenders whether you are low risk or high risk if they were to loan you money, eg. are likely to make your payments regularly and on time.
It’s calculated by looking at credit report data like how many account you have, age of accounts, variety of accounts (credit card, car loans, mortgages, etc), your balance relative to credit limit on credit cards, history of on time payments, any negative marks (account written off as bad debt, bankruptcies), any recent credit applications (hard pulls). All that info gets parsed into a number that in many cases can provide instant/quick approvals on loans.
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