What is Credit and Why is it so Important?

Who hasn't heard some or all of the following?

Be sure to check your credit score periodically.

Apply for a credit card so you can establish credit.

Your credit score dropped.

Your credit score rose.

What exactly does any of this mean and what is considered a good credit score?

According to Credit.com, here are the categories that credit scores fall into, ranging from bad to excellent:

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