Credit Score Essentials

Baseball coaches won't make a player aThis data is grouped into five categories:
designated hitter unless their batting average- Payment history. How well do you pay your bills
proves that they're able to hit the home run!on time?
Likewise, banks and credit card companies won't- Amount of debt. Do you owe lots of money on
lend money to people unless there's proof thatmany accounts?
they'll repay the loan. Lenders look for that proof- Length of credit history. How long have you had
in your credit score, the "batting average" of yourcredit?
overall credit history. What's in your credit score?- Types of credit. Do you have a healthy mix of
It's much more than a number attached to yourcredit (credit cards, installment loans, mortgage
credit report. It's an important piece of financialloans, etc)?
information that lenders look at when decidingNew credit. Are you taking on too much debt?
whether or not you are a worthy investment.A credit score takes all these categories into
You need to build the highest credit score possibleconsideration. No one piece of information or
to prove to banks and credit card companies thatfactor alone will determine your score, just as one
you'll repay the money they lend you well. Credithit alone doesn't determine a player's batting
reports are scored on a scale between 350 andaverage. Remember that your credit score will
850, and the closer your score is to a perfectchange with credit report changes-- if you stop
850, the higher likeliness your loan or creditpaying a loan, your credit score will go down.
request has of being approved!Similarly, if you begin paying all of your bills on
Most credit scoring systems are calculated fromtime, your score will increase, and you'll qualify for
all the different credit data in your credit report.a loan that's the equivalent of a home run!