Many of us know what a credit score is, but have no idea how to check our own. A credit score generally falls between 300 and 850 with higher numbers being better. The main factors that affect your credit score are payment history, debt ratio (debt/income), length of time at your current address, and a number of inquiries on your report in the past 12 months.
What is a credit score?
A credit score is a number that represents how well you've paid back your debts in the past. It's usually between 300 and 850, with higher numbers being better. If you're looking to buy a house, get a car loan, or open up an account for utilities like electricity and gas, your credit score will determine whether or not you'll be approved.
You have three major credit bureaus in the USA: Equifax, Transunion, and Experian. These bureaus keep track of where you live as well as what bills are in your name (such as cell phone contracts), which means they know more than just your employment status when determining if you deserve a good rating.
How are credit scores calculated?
In today's society, it seems as if credit scores are becoming more and more important. Whether you're applying for a new job or looking to buy your first home, it is essential that you know how the process of calculating a credit score works.
First things first: what is a credit score? A three-digit number between 300 and 850 rates individuals on their likelihood to repay debts. This number ranges from poor (300-579) to excellent (850+).
To calculate this number, there are five major factors taken into consideration: payment history, debt ratio, length of credit history, types of accounts, and recent applications for loans/credit cards.
The most important factor in determining your score is whether or not you pay your bills.
Which credit score should you check?
Do you know what your credit score is? You should check it regularly to make sure that there are no errors or inaccuracies in the data. There are many ways to get a copy of your credit report, and one of the easiest methods is by ordering it online.
Your credit score can affect everything from your ability to rent an apartment, buy a car, or even be approved for loans and mortgages. Have you ever wondered which type of credit score you should be checking?
If you are in the market for a credit repair company, it is imperative to take your time and find one that will work best for your needs. There are many things to think about when looking at different companies so make sure you have an idea of what type of service you need before getting started.
Call us at (888) 803-7889 today for the best credit score services around.
Resources:
The reason credit score drop
Too Many Inquiries Can Hurt Your Credit Score
Top 10 Tips to increase your credit score
