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In order to know your credit rating, the credit score, or what your credit score is, you need to know a few key numbers. This article will provide an overview of the three most important scoring factors and how they affect your rating. We will also look at what happens if you have a low or average score, as well as some ways to improve things.
Credit scores are the system by which lenders decide whether to grant the borrower money in the form of loans for buying homes and cars or for opening lines of credit. The amount one receives is largely determined by their credit rating, which can be affected by factors such as age and income level. The higher your credit score, the better your loan terms will be.
Your credit score – also known as your FICO score – is a three-digit number used to measure how well you have manage credit. It tells lenders how you have used available credit in the past and what kind of risk they can take on when granting future loans to you and other borrowers.
Payment history: This is similar to the record of debts you pay on time or how much money comes from different sources. Your payment history can also be affected by people who owe you money, like landlords or utility companies that withhold payments for late bills but don't make them themselves.
Credit scores are the system by which lenders decide whether to grant the borrower money in the form of loans for buying homes and cars or for opening lines of credit. The amount one receives is largely determined by their credit rating, which can be affected by factors such as age and income level. The higher your credit score, the better your loan terms will be.
Your credit score – also known as your FICO score – is a three-digit number used to measure how well you have manage credit. It tells lenders how you have used available credit in the past and what kind of risk they can take on when granting future loans to you and other borrowers.
Payment history: This is similar to the record of debts you pay on time or how much money comes from different sources. Your payment history can also be affected by people who owe you money, like landlords or utility companies that withhold payments for late bills but don't make them themselves.
