| If you are trying to rent an apartment, borrow money | | | | There are a few things that are reviewed by |
| for a car, a home or even get a credit card, your | | | | companies in order for them to compose your credit |
| score can have a major impact on whether you can | | | | score. They look at your past payment history. How |
| borrow, how much you can borrow and even your | | | | well you pay your bills and when you pay them. They |
| interest rate. Understanding your score is important but | | | | pay close attention to your outstanding debt. If you |
| there are a lot of numbers and confusing wording that | | | | have too much debt, your score will be lower. It is also |
| can make this a challenge. | | | | composed of how long you have had your credit |
| A credit score is a mathematical system that consists | | | | history. If you are just starting out, your credit score |
| of many numbers that are used to gauge your credit | | | | may be lower even though you do not have any bad |
| risk. The most commonly used form for this is called | | | | points on your report. |
| the FICO score. This score is used to evaluate your | | | | Your recent credit applications will also be reflected in |
| worthiness for credit. To evaluate your score, you get | | | | your score. If you have too many credit applications |
| a certain amount of points based on the information | | | | made, this will look bad on your report. You should also |
| that is listed in your credit report. The highest score | | | | think about what types of credit and loans you have. |
| possible is 850 and the lowest is 300. A score of 650 | | | | You do not want to have a lot of high balances on |
| or higher generally means that your credit is pretty | | | | your credit report. These balances along with high |
| good, however, until you reach 850, there is always | | | | interest rates will go against you and decrease your |
| room for improvement. | | | | score. |
| If your credit score is 700 or above, then you are | | | | If your score is lower than you want it to be, you |
| considered to be an excellent credit risk. You should | | | | should take measures to improve it. You can buy |
| have no problem getting any kind of credit and will | | | | many books and tapes that will show you some great |
| most likely be offered a lower interest rate for most | | | | ways to improve your credit. There is also credit card |
| of the credit financing. Therefore, it is advisable for | | | | counseling services that you can obtain in order to get |
| everyone to strive to obtain a 700 or higher credit | | | | good advice for fixing your credit score yourself. |
| score in order to save money on your mortgage, | | | | No matter what your credit score is you should sure |
| credit cards or other personal loans. | | | | that you check your credit report once a year. This |
| There are three major credit-reporting agencies that | | | | way you can insure that everything on your credit |
| will play a big part in your credit. These three are | | | | report is accurate. Review the information carefully, |
| Experian, TransUnion, and Equifax. Your credit score | | | | and if there is anything on there that is questionable, |
| may be different for each of the credit bureaus | | | | dispute it and have it removed from your report. That |
| because they do not have the same information about | | | | way you can be sure there will be no surprises next |
| you and each uses a slightly different method of | | | | time you want to finance a major purchase. |
| calculation. | | | | |