What Is a Credit Score and Why It Matters Your credit score is a three-digit number that shows how likely you'll pay back borrowed money. The numbers run from 300 to 850, and a higher score means you're better at handling credit. Your score affects loan approvals, interest rates, and maybe even your insurance premiums.
This comprehensive guide will walk you through the key differences between charge-offs and collections, their specific impacts on your credit score, and the most effective steps to recover from either situation.
Charge-offs and how it affects your credit