| When you apply for credit the main factor that | | | | Your chances of being approved for credit by any |
| determineswhether or not your application will be | | | | lender,whether the lender is a bank, credit card |
| successful is yourcredit score. Your credit score is | | | | company or anyother lender, are increased significantly |
| used to make immediatedecisions by lenders on the | | | | if you have a highcredit score, as the risk to the lender |
| potential risk involved if yourapplication were to be | | | | of incurring a lossis lower than the risk would be if you |
| approved. Credit scores are simply anumber between | | | | had a low creditscore. |
| 0 and 1000, which is calculated from all theinformation | | | | In the event that you miss payments for just one |
| pertaining to your credit report. | | | | singlemonth on your bills, the result can be that your |
| There are many factors that are taken into account | | | | creditscore could drop from a healthy 700, all the way |
| todetermine a borrower' s credit score such as how | | | | down to 600or less according to Bankrate, an |
| long credithas been held for, how much of the | | | | estimator of creditscores. Another scenario that will |
| available credit, hasbeen used, any late payments. Also | | | | have the effect oflowering your credit score is running |
| things like charge-offsand bankruptcies will have an | | | | at the maximum limiton more than one credit card. |
| affect on your credit score. | | | | There are steps that can be taken in order to raise |
| A credit score below 500 is not looked on favorably | | | | yourcredit score which will allow you to qualify for a |
| at all,and consumers with a score below 600 will | | | | betterrate when applying to lenders. Because it is your |
| typically belooking at a fairly high rate for their credit. | | | | currentdata that your credit score is based on, and not |
| Your scorewill need to be over 700 to get a | | | | your credithistory, by following these steps it is possible |
| reasonably low rate, andif you can get your score to | | | | to repairyour credit score, raising it from 500 / 600 up |
| about 750 plus you should beable to get the lowest | | | | to around |
| rates that are available. | | | | 700 or better, which will give you access to better |
| Credit scores are used whenever you apply for credit. | | | | rateswhen applying for credit. |
| So ifyou have a loan, whether it be a mortgage, auto | | | | Because your credit score can result in |
| insurance,personal loan, credit card, or any other kind | | | | significantdifferences in the rate of interest that you will |
| of loan, yourcredit score is used to determine what | | | | need topay, a major benefit of a good credit score is it |
| interest rate youwill be charged. | | | | will allowyou to save money by paying a lower rate of |
| If you have differing credit scores from different | | | | interest thanyou other-wise would if your score was |
| creditreporting agencies, then all this means is that | | | | low, and can alsohelp simplify your financial dealings. If |
| theinformation held by the different agencies about | | | | the interest rateyou are offered when applying for |
| you isalmost certainly different. Knowing this you can | | | | credit is not good, butyour credit score is, then inquire |
| understandthat your credit score will change when | | | | as to why, and if you arenot offered a better rate |
| changes are made toyour credit report held by these | | | | then shop around until you findone that is acceptable. |
| agencies | | | | |