A Credit Score is calculated based on various factors such as credit history, payment history, debt-to-income ratio, credit utilization, and length of credit history. Having a good credit score is crucial for personal finances as it can determine the interest rate on loans, credit cards, and other financial products. Many landlords, employers, and insurance companies also use credit scores to assess an individual’s risk level. A good credit score can increase the chances of getting approved for an apartment lease, a job, or lower insurance premiums. Therefore, maintaining a good credit score influences one’s financial stability.