The credit score is a 3 digit number that plays a vital role in deciding the credit worthiness of an individual. A good credit score brings with it legions of benefits for anyone who intends to purchase on credit. One of the major benefits is that the higher scores get the lowest rates of interest.
The scores range from 300 to 850 with the majority of people being in the 680 to 750 range, which is considered to be a good score. Anything above 780 is the best credit score range to be in because an individual is afforded the best deals on interest rates. The credit score is calculated from all the information in your credit report such as all your accounts, payment details and history, details of mortgage and loans and any other relevant information.
The most widely used score model is the FICO score. It is the basis of evaluation for the lender to judge critically the credit worthiness of an individual. The best score always guides the sanctioning authority to proceed appropriately, at least initially, amongst all other applicants.
It acts as a screen to choose a few for further scrutiny before sanctioning final approval based on other important parameters also. In short, it can be said that the best credit score points to an established and time tested authentic system which definitely leads to an unbiased sorting of individuals for granting of loans etc.
To maintain and increase your credit score one should always make account and loan repayments on time without default, and use your credit card responsibly and avoid using up all the available credit. Too much debt can also negatively influence your score, so keep accounts to a healthy level and endeavor to make all the repayments on time.
It is beneficial that one constantly and regularly monitors their score. If you have the best credit score, you are considered to be a financially stable and responsible individual.