What is a Good Credit Score?

What is a good credit score?

Your credit score is the single most important factor in determining your ability to utilize credit throughout your life. Your credit score can be your best friend or your worst enemy. It can be the difference between getting a new loan or not.

What is Your Credit Score?

Your credit score is a number that represents your creditworthiness. Basically, your score it a representation of your responsibility with credit (will you pay your bills?), and is used by lenders to assess the level of risk associated with extending you new credit.

Who Tracks Your Credit Score?

Credit bureaus are responsible for collecting information from creditors, compiling that information into a credit score, and then providing that information to various agencies that may request it.

What Determines Your Credit Score?

Fortunately, the factors that determine your credit score are no secret. According to the FICO site, there are five main factors that determine your credit score: 1. Amounts owed 2. New credit  3. Payment history  4. Length of credit history 5. Credit mix

How Your Credit Score Can Save You Money

The same FICO site that brought you the credit score factors above also provides a loan savings calculator that shows you just how much you can save in interest depending on your credit score. You can do these calculations yourself with your mortgage balance.

How Can You Improve Your Credit Score?

Even if you have bad or poor credit, you can begin to turn your credit life around by following these tips from VantageScore to improve your credit score. It’s not hard to improve your credit score, it just takes time and knowledge about the system.

Swipe Up to Learn More About What is a Good Credit Score?

For More Posts Like This Visit

Money Saved Is Money Earned!