Your Credit Score

Your Credit Card Score And How It Can Be Important.

Your credit score, it is a check point system used by lenders and potential banks to find out your previous and past credit history. Your score, which can range from a measly 300 to a amazing score of 900, your credit is based on a number of many things, including credit payment history, how long of time you've held credit lines and unpaid balances, amount of credit outstanding and a few other things to go along. Ones credit score can mean the world when it comes to finance and applying for loans, and you need to know exactly what can do to benefit your life.

The credit score came from a company called Fair Isaac Corp, a California based company that came up with the as well as the FICO score. The scores come from the largest three credit reporting bureaus, Experian, TransUnion and Equifax. They each have their on version of the credit score. There is also a rising agency named VantageScore. This comes from a work in progress development of all three credit bureaus in an a attempt to simplify the credit scoring process. This will prove to not only be a numerical value , but a letter grade as well. Someone with a week FICO score from the range of 500-600 would be hit with the letter grade "F", and the rest follows.

Whatever method is used, however, it would be very important to work on your credit score to the best of your know how to keep your credit in good standing. This tiny credit score number can has a deep effect not only whether or not you'll qualify for credit, but if you do and will be able to receive credit, and the interest rates that will come along with it. It is a proven fact, someone with a low credit score, are much more of a suspect and they will pay higher interest rates to borrow money than a customer who has a great credit standing.

The regular normal credit rating from the three credit bureaus is broken up into many different criteria’s for viewing just how good you control your credit . These five factors mix together a detailed picture of your past credit history. The first is how you pay your bills, if they are on time late and so, this will take for a astonishing 35% of the score. Second is the amount of money you owe and how much available credit you have left. This one counts for another 30%. third is how long you have had your credit history. Fourth, the types of credit you have is judged at 10%. Last would be any recent or new credit applications, another 10%.
A few issues that will never come into play would be things such as sex, race, religion