What is a credit score, and what does it mean to you?
The information below is provided as a public service from Debt-Tips.com. All of the information comes from various organizations, U.S. government agencies and departments. As a consumer, you owe it to yourself to know as much as possible about debt, credit, taxes, mortgages, banking – and avoiding related scams.
The information on this page involves credit scoring. The higher your credit score, the better. Many factors affect your credit score – including the amount of debt you have, your prior payment history, and the number of accounts you have.
Your credit score will affect the amount of money others will loan you, the interest rate you will receive, and your ability to borrow money. So, it is a good idea to keep track of your credit history, and you won’t be surprised next time you go to borrow money:
"A credit score is a number that helps lenders and others predict how likely you are to make your credit payments on time. Each score is based on the information then in your credit report.
Credit scores affect whether you can get credit and what you pay for credit cards, auto loans, mortgages and other kinds of credit. For most kinds of credit scores, higher scores mean you are more likely to be approved and pay a lower interest rate on new credit.
Lenders look at your scores all the time. They look at your scores when deciding, for example, whether to change your interest rate or credit limit on a credit card, or whether to send you an offer through the mail. Having good credit scores makes your financial dealings a lot easier and can save you money in lower interest rates. That's why they are a vital part of your financial health."
Do you want to know why your creddit score is important? Or do you want to know how your credit score is determined?
