| When you were at school, you brought back home | | | | considered first. Without a good credit score your |
| your report card to show your parents how you fared | | | | application may be refused by your landlord. Credit |
| in school. Similarly a credit report shows how you are | | | | card companies may want to figure out a better offer |
| faring in your financial life, except for that you don’t | | | | for you if you have a good score. On the other hand |
| have to bring it back home to show your mom and | | | | with a low credit score if you are granted a loan, you |
| dad anymore. But it still decides the financial life you will | | | | might have to pay a huge rate of interest or also may |
| have based on this score. | | | | have to face refusal from lenders. On the other hand |
| What is a credit score? | | | | with a high credit score you can get better interest |
| This is a three digit number between 400 and 850 that | | | | rates on your loans and save money as compared to |
| is based on the credit history that you have as a | | | | others with a low score. If you have a low credit score |
| debtor. The numerical data provided here is based on | | | | you may seek professional help and go for credit |
| your debt paying history, debt profile as well as | | | | counseling. Although credit counseling will show on your |
| statistical information about other borrowers used by | | | | report, it will still have a better influence on the creditors. |
| lenders to determine credit behaviors. | | | | You might have to pay a huge amount as interest but |
| What does your credit score mean? | | | | still your loan will be sanctioned. |
| Your credit history is measured through your credit | | | | How can you improve your credit score? |
| score and potential lenders would definitely like to take | | | | There are few basic ways to improve your credit |
| a look at your score to find out if you a good | | | | score. They are: |
| borrower. If you have a low credit score lenders | | | | • Try to pay off or reduce any outstanding |
| automatically assume that you are someone who is | | | | debt. |
| not likely to pay your debts on time or at all. If you | | | | • Do not apply for new credit unless you have |
| have a high credit score that means you are a good | | | | moved upward on your credit score. |
| borrower and someone who pays their dues on time. | | | | • Each credit check done by your creditor will |
| How effective is a credit report? | | | | have an adverse effect on your score. So, don’t |
| Credit scores are important in almost any financial | | | | let your creditor take too many looks on your report. |
| transaction you may carry out. Whether it is a house | | | | • Do not keep to many credit cards. Keep the |
| you want to buy or a car or even want to apply for | | | | ones you have had for the longest period of time. |
| refinance, your credit score will come in to play. Even if | | | | • Have a long credit history than a short one. |
| you want to rent an apartment, your scores will be | | | | |