Are you looking for general information about credit scores because you're not quite sure what it is or what it means for you financially
? If you don't know how your credit score is determined and how that number affects you, here are a few helpful facts about a number that determines whether or not banks and other lenders would be willing to lend you credit.
This number can be used by pretty much any company you deal with financially, be it the bank that gives you a loan, the landlord that wants to make sure you'll be reliable for rent, the phone company that wants to know if you'll pay your bills on time or the credit card company that's deciding what credit limits should be imposed on your account and what your interest rate should be.
There are a few different methods for statistically analyzing your credit score. In the Unites States the number determined by FICO, ranging from 300 to 850, is the most commonly used score.
Between these two numbers, anything below 600 is considered a very poor score and lenders will be quite wary of giving you a lot of credit or a low interest loan. Going above 690 is considered an excellent number and with such a high score you'll find high limits on your credit cards with few restrictions and good interest rates on any loans you take from the bank.
The factors used in determining your score are basically your past history and present situation regarding credit and debt. Any outstanding debts will lower your the number, as will the amount of credit you're currently using. A history of paying bills in full an don time will raise it.
If you don't have a very good idea of what your credit history looks like to an outsider, you can order a free credit report once a year to see what things look like. And that way anything that looks wrong to you can be reported to the proper people and further investigated.
Learning about your credit history and being informed on the relevance of a credit score can help you to get a good score and make lenders more willing to give you credit at good interest rates. This number is very important for your financial future and making big purchases like a house or a new car.