What does it mean if you have a low credit score?

Having a low credit score typically indicates that you are less likely to be approved for loans. A credit score is a numerical representation of your creditworthiness, and lenders use this score to evaluate the risk of lending you money. A low score suggests that you may have a history of missed payments, high levels of debt, or other financial issues that signal to lenders that you might pose a higher risk. Consequently, lenders may be reluctant to approve your loan application, or they may offer you loans at higher interest rates to offset the risk. Understanding this concept is crucial for managing your finances effectively and improving your chances of loan approval in the future.