| A persons credit score is one of the most important | | | | person much more freedom and allows them to save |
| numbers they will ever deal with. A credit score is | | | | their money to pay their debts. |
| used by many different companies to determine the | | | | If you have a low credit score then you need to work |
| credit worthiness of a person. Almost every business | | | | to build it up. You should not apply for credit, get new |
| a person deals with from utility companies to banks | | | | lines of credit, but instead pay off debts. Work to bring |
| are interested in their credit score. | | | | down your outstanding balances and pay off old |
| The credit score is based upon the things reported in | | | | accounts. It is also smart to keep older accounts and |
| the credit report. The higher the score, the better. A | | | | close out newer accounts. |
| higher score means lower interest rates and an easier | | | | Doing these things will help to bring your credit score |
| time getting lines of credit. A credit score is made up | | | | up. If you are unable to figure out how to handle debt |
| of the following information: | | | | then you should use a financial expert to help you. |
| - 35% is based upon the persons payment history. It | | | | They can make suggests and formulate a plan to help |
| will be affected by making payments or not making | | | | you fix your credit. |
| payments. | | | | If your credit history does become very bad then your |
| - 30% is based upon outstanding debt. This is any debt | | | | chances of obtaining credit will be slim. Lenders will see |
| that is yet to be paid. | | | | you as a very big lending risk and will either turn your |
| - 15% is based upon the length of time the person has | | | | down or make you pay very large interest rates. That |
| had an established credit history. | | | | said, more and more lenders are starting to relax their |
| - 10% is based upon the inquires made into the | | | | lending criteria in order to service the very sub prime |
| account. This is the credit checks, basically, made for | | | | market. |
| this person. | | | | Credit scores can be confusing since the actual |
| - 10% is based upon the different types of credit the | | | | calculations are very tedious and almost never outright |
| person has. | | | | explained. All a person should be concerned with is |
| A credit score is very important to understand. This | | | | keeping their credit reports in good shape. This in turn |
| score holds a lot of importance and should be a main | | | | will ensure their credit score is good. |
| priority. Credit is everything these days and having a | | | | So you need to make sure that you keep up to date |
| bad credit score can mean difficulties even getting the | | | | with your mortgage and secured loan payments, pay |
| simplest thing done, like getting a telephone turned on in | | | | off your store and credit card bills on time, dont get |
| your name. | | | | into more debt than you can afford, do not make too |
| Low credit scores can be costly. A person with a low | | | | many applications for credit and try not to let your |
| score often finds they are charged fees and high | | | | bank accounts become overdrawn. |
| interest rates on everything. A higher score gives a | | | | |