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How do credit scores work? 2 finance professors explain how lenders choose who gets loans and at what interest rate

  • Written by D. Brian Blank, Assistant Professor of Finance, Mississippi State University
How do credit scores work? 2 finance professors explain how lenders choose who gets loans and at what interest rateOne way to get a good credit score is to pay bills on time every month.tolgart/iStock via Getty Images Plus

With the cost of borrowing money to buy a home or a car inching ever higher, understanding who gets access to credit, and at what interest rate, is more important for borrowers’ financial health than ever. Lenders base those decisions...

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