Credit Score 101
When applying for a loan or insurance, the lender will oftentimes check for your credit score for approval. What is your credit score? It is a number that is meant to represent your “credit worth,” or an indicator of whether you will be able to pay back what you’ve loaned or charged.
Why Should You Care?
Your credit score is your ticket into getting approved a credit card, a loan, or even insurance. The common FICO range for credit score ranges from 350 to 850. The lower the score, the more it is seen that you are likely to not repay any loans or credit. The higher the score, the more likely you are able to pay it back.
Factors of Credit Score
· Amount of payments paid on-time
· Credit card usage
· Amount of accounts
· Negative reviews on credit report
More Than One Score
Truth of the matter is, you do not just have one score that determines getting loans and credit cards. In fact, many lenders probably don’t have the same credit score for you. Credit bureaus carry different information regarding your credit history. Credits are constantly change too, so the score at one credit bureau will differ from place to place.
How Can I Get a Good Credit Score?
The easy answer is to keep up with the factors that affect your credit score. Do not apply for credit a lot, make sure all of your payments are on time, and be sure to keep all of your credit information on time and accurate. It’s an important number to have, so keep up with it as frequently as possible.