Drug testing

How Credit Scoring Works

The all important credit score! It determines the amount of loan you can get, it determines the interest rate at which you are charged for a loan, etc. Your credit score plays an important figure in your financial life. So what goes into making that all important score of yours? How does it increase, how does it decrease and what are the factors that go into its calculation?

Your credit score is a number that reflects on the likelihood at which you will pay back a loan. Scores range from 350 (high risk) to 950 (low risk). Credit scores do not take into consideration your income, how much savings you have or demographic factors such as gender, race or nationality. Your credit score is affected by your current debt level, your past delinquencies, your credit history and how many times your credit report is pulled up by various agencies. Your score considers both positive and negative information in your credit report. For instance, recorded late payments will lower your credit score while a good track record of making payments on time will raise your credit score. Timely payment of your bills is important to ensure you maintain a good credit score. The amount of balance you have left on your credit card, how many credit card accounts you hold and your use of revolving credit also affect your credit score to a great extent.

Your credit score and credit report is formed on the basis of your credit history and you need to have at least one account which has been open or updated in the past six months to get a credit score. If you do not meet the minimum criteria for getting a score, you may need to establish a credit history prior to applying for a mortgage.

All in all, if you can pay for all your debts in a timely and consistent manner and not take more debt than you can handle, your credit score shouldn't be able to trouble you in life. So take care and be wise with your finances.

Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com - A Real Estate Portal for Home Buying, Selling and Renting. Website url: http://www.choiceofhomes.com

limousine chicago service
In The News:

Shoppers Beware - Tis The Season

It's the number one complaint from consumers and it only... Read More

A Cure for an Ailing Credit

Credit has become a much-used word, thanks to the various... Read More

Credit Report ? How to Improve Your Credit Score

One of the great mysteries of life is how the... Read More

10 Signs You May Need Credit Counseling

Debt management programs can be of real help for people... Read More

Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More

Restore Your Credit Rating And Reduce Your Debts

Your credit rating affects many areas of your life. Opening... Read More

7 Ways To Squash Identity Theft

It is the scourge of our age: identity theft. Thieves... Read More

Good Credit -- Essential for the Prospective Home Buyer

Credit is a funny thing. It can be a useful... Read More

Credit Card Incentives

Credit card companies want your business. After all, lending money... Read More

Choosing the Right Credit Counseling Agency for You ? Some Tips Part 2

Credit counseling companies come in all shapes and sizes. Whether... Read More

What Should I Do If I?ve Become a Victim of Identity Theft?

Identity thieves take advantage of everyday opportunities to discover your... Read More

Credit Card Debt: How To Control It

A lot of people spend more money than they can... Read More

Simplifying Your Search For a New Credit Card

Today, selecting the proper credit card can be a bit... Read More

Beware of Falling Minimum Payments

If you opened a credit card statement recently and were... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

How To Repair Your Credit Report

A credit report is run on a buyer when he... Read More

Discover the Parts of a Credit Report and What They Mean

So you ordered a copy of your credit report to... Read More

The Hazards Of Your First Credit Card

You probably don't need me to tell you credit cards... Read More

7 Surefire Ways To Repair Bad Credit

Do you have a poor credit rating? If so, you... Read More

Applying for Credit Cards Online

In the olden days, about 10 years ago, before the... Read More

Automobile Credit Report

When applying for a loan to purchase a car, the... Read More

It Is In Your Best Interest To Do The Math On Your Credit Card Interest

If you begin foaming at the mouth once a month... Read More

Credit Cards - The Basics

How Lenders Operate ? And How They'll Make a Tidy... Read More

Good vs. Bad Credit Debt

Do you know the difference between good and bad credit... Read More

What is Credit Repair and How Can It Help You?

There are millions of consumer credit reports on file from... Read More

roadway induction street lighting standards Pete's produce ..