Credit Scores: What's It About and What Makes a Good Credit Score?
Imagine yourself applying for a car loan, you have the money and you have the right job
to pay the loan back before the due date. However, even if you have the right job and the
money for it, you still haven't been approved for the loan. This will make you wonder
In the United States, having money and having a high salary isn't everything. You have
to consider one important thing that will have significant impact in your daily life. This
important thing is used by creditors, such as banks and credit card companies to
determine if you will likely pay back what you borrowed from them. This important
thing is called the credit score or your credit rating.
If you were delinquent in paying your bills or loans in the past, you should expect to
have a low credit score. Everything about your credit history will determine if you will
get a high credit score or not. This is why it is important for you to settle those bills or
loans on time in order to avoid getting a negative credit report from the creditors you
borrowed money from.
For example, if it took you a long time to pay for your credit card bills, the credit card
company will issue a report to credit reporting agencies that will state that you haven't
been paying your bills on time, or you still have a debt to pay to their company. This will
result in lowering your credit score.
You have to realize the fact that credit scores are very important in today's society. Even
phone companies are now taking a look of their future subscriber's credit score to
determine if they will likely pay the monthly phone bills or not. With a bad credit score,
just simply getting a phone line hooked up in your house can be a difficult thing to do.
Lenders, such as banks and credit card companies also takes a look at your credit score
to determine if you will be approved for the loan or the credit card or not. Having a high
credit score will open a lot of credit opportunities for you. People with