Credit Score is a way to assess the creditworthiness of a person, business, or loan applicant’s credit score. Credit scores are scored on a scale of 350-850 points, and your rating is determined by calculating the amount you owe and comparing it to how much money you earn.
Know your score! Whether this information will help you apply for a mortgage, car loan or any other type of borrowing, knowing your credit score will allow you to take proactive steps in order to maintain a high rating.
Benefits of Credit Score
1. Lenders use your credit score to determine if they will offer you a loan.
2. If you are in the habit of paying debts on time and not using loans in order to pay back these debts, then your credit score goes up automatically.
3. If you have poor credit, then you may want to take steps to fix your credit, such as paying down debts, raising low balances and paying interest as soon as it is charged by the lender (if funds are available). You may also want to consider opening an account with a new bank or doing some research into becoming an authorized user on someone else’s account. This will bring positive changes on the amount owed and therefore good things for your score.
4. If your credit score falls, it may be time for you to consider opening a new bank or credit card account or doing some research into becoming an authorized user on someone else’s account.
5. You need to maintain a high credit score if you want to obtain the best possible interest rate on a mortgage or auto loan. In addition, take advantage of any special offers that lenders offer their most-loyal customers. With your good credit and great payment history, you may qualify for such discounts as zero down financing.
6. If you want to obtain a car loan, but do not have sufficient down payment funds available, then apply for an auto loan with good reduced monthly payments and low interest rates.
