|RAISE YOUR CREDIT SCORE BY UNDERSTANDING IT|
|Posted on: Jul. 27, 2017 in Credit, Credit Score|
Your credit score is one of the most important thing about you. It determines your eligibility for loans, apartments, and jobs. It can affect your insurance premium. It can also open financial opportunities or it can close them. The first step toward having your credit score work for you is to understand it.
Your credit score is a number between 300 and 850 that tells lenders about your borrowing and repayment history. Have you heard of FICO? That stands for Fair Isaac Corporation, just one of the many companies that calculate credit scores. While the different companies all operate a little differently or have different score scales, most use a similar collection of information about you to determine yours. Here are some factors that go into determining your credit score:
FICO is one of the most common scores, so we’ll use that as an example. According to FICO, the average credit score in the U.S. is 695, which is considered fair. How do the other scores shake out?
A low score can hurt you, but it’s not necessarily a permanent problem. There are many ways to improve your score. Once you know how your score is determined, you can start to take steps to improve it.
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