Credit score plays an important role in a consumer’s life. Your credit score is a major factor when you plan to borrow money i.e., car loan or mortgage.Credit score determines your ability to get the loan and the interest rate you are eligible for. You can enjoy the best rates available with the help of credit score. It could also have an impact on your insurance rates and your ability to get certain jobs.
5 Things You Need To Know About Credit Score :-
1. Credit Score is a Number
This number is reported by various credit bureaus. Different algorithms are used to determine the score. Score ranges from 300 to 850 and if above 700 then considered good.
2. One Can Get The Credit Score For Free
Free credit scores are provided by many websites. One has to be careful, else one could end up paying a lot more than bargained for.
3. Good Number, Bad Loan?
Despite of your good credit score you can get a bad loan offer.This is due to the recent credit crisis.
4. Credit Score Can Be Improved
It can be improved following the given steps:-
- Review your credit report
- Set a budget and make payments on time
- Use credit cards sparingly
- Pay off the balance in full every month
5. Credit Score Can Be Lowered
It can be lowered by many things major ones are declaring bankruptcy, letting your debt go into collection, and having a tax lien against you.
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