Credit Scores
Are you thinking about applying for a loan, or wondering why your interest rate is
what it is? Chances are good that your credit score is going to play a big role in
both. What is your credit score? Your credit score is your ability to pay your debts
and how big of a risk to a lender you would be. The higher the score, the higher
your chances of getting a good loan with a lower interest rate.
how is my Credit
Score Calculated?
There are many factors that go into this. Roughly a third of your
score is determined by your credit history and whether you pay your bills on time.
Other factors that go into your credit score are how many lines of credit your have
and how much of your credit you have used up.
What are Some Ways I can Check my Credit Score?
The first step to checking your credit score is to get your credit report.
One thing that can affect your score is the accuracy of your credit report. There
could be mistakes on my credit report that could affect my credit score, you might
be asking? Yes, not all creditors report accurately on your credit report, so make
sure that it is accurate by requesting a copy at least a year to check for errors
that can be holding your score down.
How Else can you Improve Your Credit Score?
Pay your bills on time and make sure that you don't get in over your head with debt.
Repossessions and bankruptcies can damage your score and make it less likely to get
a loan in the future.
Your credit score is going to be the way that a lender determines
whether or not to give you a loan. If you have a high score you are going to have
a better shot at getting a loan for a car or a house. Make sure you are keeping up
with your credit report and paying your bills on time.