credit score is a mathematical calculation used to determine your credit-worthiness.
The formula used to calculate your credit score includes information based on
several factors, such as your payment history (which is the most important factor),
the amount you currently owe lenders, the length of your credit history, and the
number of new credit accounts you've opened or applied for recently (fewer is
Also considered is the mix of credit accounts
you have (mortgages, credit cards, finance company loans, and so on).
credit score ranges between 300 and 850. The higher the credit score, the better.
A FICO credit score over 750 is excellent; above 720 is very good. An acceptable
credit score is in the range of 660 to 720.
However, a score between 620
to 660 is uncertain, and a credit score of less than 620 is considered risky.
is my credit score important?
Your credit score is important because it
determines how much you will pay to borrow, and whether or not you will even be
able to qualify for a loan.
With a good
credit score you will probably qualify for a larger loan, and at a lower interest
rate. With an average
credit score you may still get the loan, but you may need a co-signor, and
you may pay a higher interest rate.
There are many places that advertise
credit score or a free
credit score online. Some of these places are reputable; some are not. Investigate
your options when it comes to researching your credit score.
sense is your most important asset. If you pay your bills on time, don't apply
for too much credit, and don't carry too much debt, you will have a good credit
score, which will allow you to qualify for the loans you need.
For more information, search our site or the web: