Getting a good credit score.

A credit score is highly important in a man's finance, our credit score actually affects different aspects of our financial life, credit card affects the process of getting approved for a credit card, even up to the interest rate that one will have to pay on mortgage received, the necessity of a good credit score makes it important for us to understand how it is calculated as this will set us up for financial success.

Source

Without wasting much time, let me explain briefly what a credit score is, it is a number that makes it easy for lenders like banks, insurance companies, and even house owners access how well you have managed your financial obligations in the past, it is a reasonable considerable factor when it is time to make the decision of the amount to be paid for a service or the amount to be given a loan or get into a business agreement.

Calculating credit score is not dependent on any specific calculating method, it is however calculated through the information provided on your credit report, however, the FICO (lending credit score providers) often take into consideration;

Payment History: Checking through your bill payment procedure, is a way to verify how early it is that you pay your bills, if you are trying to build up a good credit score, then ensure that your bills are paid before the minimum date.

Debt owed: If you are owing a very large amount higher than your valuable asset, then it could hurt your credit score. Lenders always prefer that people make use of less than 30% of their available credit.

Length of credit card usage: Most companies or lenders usually check the history of credit card usage before they give out extra loans of cash or properties, the longer, the better it is in most cases.

Posted Using LeoFinance ^Beta