There is a lot of confusion on the subject of credit scores. There are people who believe that they don't have a credit score and many people who think that their credit scores just don't really matter. These sorts of misconceptions can damage your chances of getting some jobs, at good interest rates, or even your chances of getting an apartment.
The truth is, of course, if you have a bank account and bills, then you have a credit score, and your credit score matters more than you might think. Your credit score can be called many things but whichever term is used they all refer to the same thing: the three-digit number that gives lenders an idea of how likely you are to repay your debts.
Every time you apply for credit, for a job that requires you to handle money, or even apply to hire an apartment, your credit score will be checked.
In fact, anyone with a legitimate business need to do so can access your credit score. Your credit score is based on how financially responsible you are and details past and current payments and credit. Thereby providing potential lenders with a snapshot of your current financial state and past repayment habits.
In other words, your credit score lets lenders know quickly how much of a credit risk you are and whether to trust you financially - and gives you access to better rates when you are accepted for a loan. Letting agencies can use your credit score when deciding if they can rely on you to pay your rent on time. Employers might use it to determine whether you are trustworthy enough to hold a job that requires you to handle money.
A major problem with credit scores is that there is a lot of misinformation about, especially through some less scrupulous companies claiming to help you boost or repair your credit score - for a cost, of course.
These companies give some people the impression that in order to boost their credit score, they have to pay money to a company, or leave credit repair in the hands of so-called "experts."
Before you start boosting your credit score, you need to know the basics, such as what a credit score is, how it is arrived at, and what part it plays in your everyday life.
If you knew what sort of information is available from a credit score, it could help you understand how your day-to-day financial decisions impact the financial picture businesses get through your credit score.
The credit score is a number, usually between 300 and 850, that lets lenders know how good you are at paying your debts and how much of a credit risk you are. Scores below 620 will probably result in you having trouble finding credit, while scores above 720 will generally give you access to the best interest rates. However, credit scores are like test scores from school days - while they give some a snapshot of how you are doing, they can be interpreted by people in different ways. More emphasis is put on credit scores by some lenders than others.
One thing you may want to understand about the software and mathematics used by credit bureaus that calculates your credit score is the fact that the math used by the software is based on research and comparative mathematics. Understanding this simple concept will help you understand how to improve your credit score.
The truth is, of course, if you have a bank account and bills, then you have a credit score, and your credit score matters more than you might think. Your credit score can be called many things but whichever term is used they all refer to the same thing: the three-digit number that gives lenders an idea of how likely you are to repay your debts.
Every time you apply for credit, for a job that requires you to handle money, or even apply to hire an apartment, your credit score will be checked.
In fact, anyone with a legitimate business need to do so can access your credit score. Your credit score is based on how financially responsible you are and details past and current payments and credit. Thereby providing potential lenders with a snapshot of your current financial state and past repayment habits.
In other words, your credit score lets lenders know quickly how much of a credit risk you are and whether to trust you financially - and gives you access to better rates when you are accepted for a loan. Letting agencies can use your credit score when deciding if they can rely on you to pay your rent on time. Employers might use it to determine whether you are trustworthy enough to hold a job that requires you to handle money.
A major problem with credit scores is that there is a lot of misinformation about, especially through some less scrupulous companies claiming to help you boost or repair your credit score - for a cost, of course.
These companies give some people the impression that in order to boost their credit score, they have to pay money to a company, or leave credit repair in the hands of so-called "experts."
Before you start boosting your credit score, you need to know the basics, such as what a credit score is, how it is arrived at, and what part it plays in your everyday life.
If you knew what sort of information is available from a credit score, it could help you understand how your day-to-day financial decisions impact the financial picture businesses get through your credit score.
The credit score is a number, usually between 300 and 850, that lets lenders know how good you are at paying your debts and how much of a credit risk you are. Scores below 620 will probably result in you having trouble finding credit, while scores above 720 will generally give you access to the best interest rates. However, credit scores are like test scores from school days - while they give some a snapshot of how you are doing, they can be interpreted by people in different ways. More emphasis is put on credit scores by some lenders than others.
One thing you may want to understand about the software and mathematics used by credit bureaus that calculates your credit score is the fact that the math used by the software is based on research and comparative mathematics. Understanding this simple concept will help you understand how to improve your credit score.