Credit Score An Introduction
There's a lot of confusing information about credit scores out
there. There are people out there who believe that they don't
have a credit score and many who think that their credit score
doesn't count for much. Your credit score can spoil your chances
of getting some jobs, of good interest rates and even your
chances of getting some apartments.
The fact is if you have bills and a bank account then you have a
credit score and your credit score matters more than you might
realise. Your credit score is may be refered to by a number of
other terms, including a credit risk rating, a credit rating, a
FICO rating, a FICO score or a credit risk score. All these
terms refer to the same thing the three-digit number that allows
lenders get an idea of how likely you are to repay your bills.
Each time you apply for credit, apply for a job that requires
you to handle money, or even apply for some more exclusive types
of apartment living your credit score is checked.
In fact, your credit score can be checked by anyone with a
legitimate business and reason to do so. Your credit score is
based on your past financial responsibilities and past payment
records and credit and it provides potential lenders with an
easy snapshot of your current financial state and past repayment
habits.
Your credit score lets lenders know fast how much of a credit
risk you will be. Based on your credit score lenders decide
whether to trust you financially and give you better rates when
you apply for a loan. Apartment managers will decide whether you
can be trusted to pay your rent on time. Employers will decide
whether you can be trusted in a high responsibility job that
requires you to handle money.
There's quite a bit of misinformation circulated about crdit
scores especially through some less than scrupulous companies
who claim that they can help you with your credit report and
credit score, for a fee of course.
Advertisements and suspect claims can mislead you to the point
where you may come away with the idea that in order to boost or
fix your credit score, you will have to pay a company or leave
credit repair in the hands of the so-called 'experts'. This is
not necessarily the case. It is possible to bring down debts and
boost your credit by yourself with no expensive help at all.