| When you apply for a loan or a mortgage, the first | | | | - A high debt level would lower your scores |
| thing the lender does is to check your credit score. | | | | considerably as it means that you are already |
| Based on your credit score, the lender decides the | | | | financially burdened with many loans and would not |
| amount of finance you are eligible for and the interest | | | | have the capacity to take on fresh credit. |
| rate at which you will be charged. So what is this | | | | - Your credit history would take into consideration your |
| credit score and how does it influence your capacity | | | | track record at paying past and present dues. Timely |
| to take fresh credit? | | | | payment of such dues would ensure a higher credit |
| Your credit score is a number that reflects on the | | | | score as compared with late payments. |
| likelihood at which you will pay back a loan. Credit | | | | - The more frequently your credit report is pulled up by |
| scores generally range between 300 and 800. In | | | | various agencies, more the points docked off your |
| general, a score of above 620 is needed to avail of a | | | | credit score. However, your checking of your own |
| loan at lower costs. If you have a low credit score, it | | | | credit report will not affect your credit score as you |
| would indicate high risk and would make it difficult for | | | | are entitled to doing so. |
| you to obtain fresh credit at reasonable costs. | | | | To ensure you maintain a decent credit score it's most |
| So what goes into the calculation of your credit score? | | | | important that you pay all your bills in a timely and |
| Credit scores do not take into consideration your | | | | consistent manner and also that you not take more |
| income or how much savings you have. Instead, your | | | | debt than you can handle. If you're able to do that, your |
| credit score is primarily influenced by your current debt | | | | credit score shouldn't be able to trouble you too much |
| level, your credit history and how many times your | | | | in life. Take care and be wise with your finances. |
| credit report is pulled up by various agencies. | | | | |