What is a Credit Score?

How does it work and where it did begin?

It works in many different ways. Each credit reporting agency creates a grade, or three digit number for your past history. The number ranges between 300-850. 850 being the best and highest and 300 being the worst and lowest. Your credit score is also known as your credit risk rating and is ultimately compiled into what is known as a FICO score. Your credit score is based on your past financial responsibilities, past history and more. This score let’s lenders know if you are a huge risk or not. Based on this score lenders will decide on whether or not to trust you. Also, what rate they will charge you on a loan. Apartment managers will use your credit score, they want to see if you will pay your rent. They also want to know how many similar situations you have been in and how many times you have defaulted on them. What does it matter? They are just looking right?

It matters. Guess what? Those people looking at your credit score? They are bringing your score down each time they look.

So don’t think that a harmless application at the store is not going to matter.

A credit score is like you SAT a snap shot of your aptitude. Of course, it’s your financial aptitude in this case. Also some lenders use it and some just look at it, and raise the APR on the credit card if you are a higher risk. It’s all dependent on what lender is looking and no lender is the same-there is no telling if they are going to help you out or not.

Too many debts will hurt your credit

Your credit is created based on if you paid your utility bills on time, if you were able to get your credit at a young age and use it wisely and if you simply paid your bills. Paying your bills late affects your credit scores, and this goes from your electric to your telephone bill. Medical bills, rent and more are all tabulated on there, it is not exclusive to credit card debt. You see, everything you do is based on credit worthiness.

Files are opened for you when you set up a bank account, and all of your financial information is stored there. If you have late payments and overdue bills they will go in that financial folder.

The Good News:

You don’t have to change yourself, or make more money. It’s really simple all you have to do is work hard and make sure that you are paying your bills. We get in touch with the credit companies and work out payment plans, charge offs and more. We help you to create a happy financial future. It’s that simple.

Contact us today to get your free credit evaluation.