What Does Your Credit Score Tell You?

When you apply for a loan or a mortgage, the first thing the lender does is to check your credit score. Based on your credit score, the lender decides the amount of finance you are eligible for and the interest rate at which you will be charged. So what is this credit score and how does it influence your capacity to take fresh credit?

Your credit score is a number that reflects on the likelihood at which you will pay back a loan. Credit scores generally range between 300 and 800. In general, a score of above 620 is needed to avail of a loan at lower costs. If you have a low credit score, it would indicate high risk and would make it difficult for you to obtain fresh credit at reasonable costs.

So what goes into the calculation of your credit score? Credit scores do not take into consideration your income or how much savings you have. Instead, your credit score is primarily influenced by your current debt level, your credit history and how many times your credit report is pulled up by various agencies.

• A high debt level would lower your scores considerably as it means that you are already financially burdened with many loans and would not have the capacity to take on fresh credit.
• Your credit history would take into consideration your track record at paying past and present dues. Timely payment of such dues would ensure a higher credit score as compared with late payments.
• The more frequently your credit report is pulled up by various agencies, more the points docked off your credit score. However, your checking of your own credit report will not affect your credit score as you are entitled to doing so.

To ensure you maintain a decent credit score it's most important that you pay all your bills in a timely and consistent manner and also that you not take more debt than you can handle. If you're able to do that, your credit score shouldn't be able to trouble you too much in life. Take care and be wise with your finances.

Sameer S Panjwani - Homes For Sale / Homes For Rent - Real Estate Listings

---

Credit cards

If gold medals were awarded for marketing consistency, the credit card industry would be the Sarah Hughes of the business world. Major players Visa and MasterCard, who... Read More

Can You Acquire Good Credit Overnight? You Bet

Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file,... Read More

The Best Strategy To Erase Credit Card Debt

Credit card debt is a growing sickness in the United States and Europe. It is very important to eliminate debt and take control of your financial health.In... Read More

10 Simple Steps to Manage Your Credit

By far the greatest invention the banks have ever come up with came out in the 20th century. Also the new field of Credit Management was born... Read More

What is a Credit Card?

A credit card allows you to buy things even though you might not have the money to pay for it right away. The company that gave you... Read More

What You Didnt Know About Your Credit Card Numbers

Have you ever really looked at your credit card and tried to figure out what that huge string of numbers really means? Do these card issuers have... Read More

Credit Cards or Store Cards - Which Is Better?

Introduction In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers.... Read More

Credit Cards - The Basics

How Lenders Operate ? And How They'll Make a Tidy Fortune from the UnknowingCredit card companies might seem like immensely clever, money making enterprises that exploit every... Read More

Opting For A Credit Card? Check Out Certain Terms

You've just received a "pre-approved" credit card offer in your mail. Without wasting a minute you're ready to accept it, especially if it's the "before-the-offer-expires" one. Wait!... Read More

How to Dispute Credit Report Errors

Your credit report--a type of consumer report--contains information about where you work and live and how you pay your bills. It also may show whether you've been... Read More

Various Types of Credit Cards - Part 2

Several different types of credit cards offer several different options, depending on what your needs are. Some are geared toward individual consumers while others are set up... Read More

What You Need To Know About Credit Cards

What is a credit card? A credit card is a card that allows you to borrow money to pay for things. There will be a limit... Read More

Credit Card Incentives

Credit card companies want your business. After all, lending money to people is profitable. Besides the interest fees that you'll be charged, the credit card company also... Read More

Preventing Credit Card Mess

Credit card debts problem is extremely common today. It is usually the first sign of longer term financial troubles. How to manage your credit cards so that... Read More

Understanding Your Credit Score

When you apply for credit one of the first things almost all credit officers do is check your credit score. Although not all of those officers explained... Read More

Minimum Credit Card Payments to Rise

For years, major credit card companies have allowed cardholders to make minimum payments of 2% of the outstanding balances on their credit cards. Having customers pay the... Read More

19,178 Identity Theft Victims Per Day - Are You One Of Them?

Identity theft statistics are shocking. And we are told that it will only become worse, before it gets any better. Are you likely to be affected? According... Read More

Choosing The Best Credit Card To Apply For

Always shop around to get the best deal when choosing which credit card to apply for. If you don't do your due diligence you could end up... Read More

Do You Know The Top Five Credit Card Mistakes?

When you're dealing with credit cards, you're playing with fire. Unfortunately, there are plenty of people out there who don't realise that, and make all sorts of... Read More

It Takes Credit To Build Credit

Using a credit card wisely is an important step in building a good credit rating. If you're trying to re-build your credit or if you're young and... Read More

Student Credit Cards 101

Almost all students have and use student credit cards. Some of the students use them wisely and build for them an early credit history but others accumulate... Read More

Credit Cards - The Top 3 Things You Need To Know

Today there are so many different credit cards available, student prepaid, low interest cards etc. that it has becomes a real hassle to find the right one... Read More

Credit Damage: Getting Compensated for Your Loss

Until recently lawyers for victims of credit damage had little possibility to collect for damages beyond medical treatment, lost wages and property loss. Insurance companies threw up... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO score. FICO stands for Fair Isaacs Corporation. It's a company that developed the credit scoring software used... Read More

Credit Card Entrapment - The Secrets are Out

Have you ever wondered why your credit card bill is so high and you can't seem to pay off the balance? Well you are not alone in... Read More

Top 7 Factors to Consider While Reviewing Credit Card Offers

Credit cards have migrated from being hip or convenience product into a must have entity for everybody. Shopping Online you need a credit card. Wanna book a... Read More