Credit scores are calculated on your total loans assigned to you, your timeliness in repaying your past loans, income, etc. Having a good credit score (e.g. above 700) will allow you to borrow money at a lower interest rate than someone with a poor credit score. Keeping a good credit score is extremely important. Credit scores impact not only money borrowing, but can also impact the ability to get a good paying job (some employers look at a credit score to determine whether or not to hire you).

Watch this brief video on building credit:

https://youtu.be/oigAa9nfmyY?si=V0pAm2hWe2VXWfWV