Your Credit Score is a three-digit number used to verify and determine your solvency and reliability to pay your debts.
It usually varies between the numbers 300 to 850. Using history information coming from your credit report, the score is being evaluated and computed. In other words, it is a numerical expression showing and representing your capability and creditworthiness based on your data and information from your credit files.
Your credit history and even some of your bill-paying history and other expenses record helps determine your credit score. Remember that every single bit and trace of your credit history has its own weighs and importance in calculating your the score.
Also, remember that your creditors are most interested in knowing the fact that whether or not you will be able to pay your debts (your income). It is one way of somehow giving themselves an assurance and guarantee that their investments and money will not just be taken for granted and that they can turn a profit in the money they lend you.
They can put their trust on you upon knowing that you have paid well your credits and loan in the past like no late or missed payments fines, and other collections. Have a good credit score!
We want so many things in life. We want a good life with a nice house and a car with your loved ones. It is very normal to people to dream and desire things like these.
Everything is within your reach. So your credit score will tell the open credit market that you have and show everything that affects your creditworthiness. So using all of this information, your credit score will be summarized into a three-digit number.
The following are the percentage of the credit scores determined based on the different credit records:
-35% of the score will be based on your payment history
-30% of the score is based on outstanding debt
-15% of the score is based on the length of time you’ve had credit
-10% of the score is based on new credit
-10% of the score is based on the types of credit you currently have
Always put into an account that the higher your credit scores are, the big possibility for you to get the loan or mortgage that you need. On the contrary, if you have a lower credit score or if it decreases, your creditor might think of putting or attaching high interest rate on your loan.
On the whole, in order to improve your score, always pay your current bills on time. Being responsible, reliable, and conscientious about your expenses is very imporant to rebuild your credit.
Bankruptcy will have a negative effect in your score and you ability to borrow money. However, if you are considering bankruptcy, you credit score is probably already damaged. Bankruptcy could be the first step to clear your score and start new with a new payment history. Some of our clients report getting better terms and offers from lenders after they declare bankruptcy.
If you would like to know more about your credit score and ways of increasing visit our office now. Your welfare and best interest is our utmost concern.