A credit repot score is the basis used by lenders to determine if your loan application will be approved or not. If your credit report score is above 700, there wont be any problems and your loan will be granted with low interest rates. If however you score below this figure, you will be charged a higher interest rate and in the most extreme cases, they will not approve your loan application.

But how do creditors come up with this figure? Basically, they do this by reviewing credit related information such as your payment history to find out if you have ever had any late payments or filed for bankruptcy. They will also check how much money you owe not only on your credit (more…)

Every year, a credit repot comes out with a corresponding score at the bottom. This could be from 350 to 800 and it varies from person to person depending on their consumer behavior.

Your credit score is based on different things. This includes your credit history, outstanding debts, credit length, number of inquiries made and the types of credit that you have.

The one that carries the biggest weight is the credit history since this takes into account what has happened over the past 7 to 10 years. During this time, you may have incurred late payments or filed for bankruptcy. If there are none, then you get a perfect score.

The second biggest chunk comes from any outstanding debts that you may have (more…)