Your credit card score, or your credit rating, gives credit card companies an insight into your lending past. Financial institutions use your credit score to decide whether they should issue you a card or not.
Credit card scores are also referred to as 'FICO' scores, an acronym for the "Fair Isaac Corporation", which created the scoring system used to asses your credit worthiness. Your credit card score is meant to be an objective indicator of how you stack up against the average person in terms of your history of paying back debt or credit taht you owed.
Your credit card score is a number between 300 and 850. The higher your score, the more reliable you've been in the past in paying back loans or credit. There's lots of advantages for having a high credit score. First of it will be easier for you to be accepted for credit cards in the first place. Then once you're accepted, you'll probably be offered a lower interest rate, better introductory terms, or other types of more favorable loan terms than those that were approved with a worse credit card score. This not only gives you more options, it can end up saving you more money on your credit cards. A mortgage that has a 1% lower interest rate, can end up saving you thousands of dollars, so lower interest rates do have an impact on your wallet.
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