What is a credit score

Having a good credit score is very important for every one that is of age. A good credit score will increase your chances of getting some good jobs; it will help with the interest rates you enjoy when you want to borrow and so many other aspects of your life. However there are many misconceptions about credit scores out there. There are customers who believe that they don’t have a credit score or that their credit scores just don’t really matter. If you have a bank account and bills, then you have a credit score, and your credit score matters more than you might think. Having misconceptions that your credit scores does not really matter could harm you. Credit score is what helps organizations that want to lend you money determine if you will be able to pay back your loan.


Your credit score is checked anytime you apply for a credit or applying for a job that requires you to handle money and also even when you want to rent some apartments. And your score can be checked by any body that needs to do so legitimately. Your credit score is based on your past financial responsibilities and past payments and credit, and it provides potential lenders with a quick snapshot of your current financial state and past repayment habits. It can be likened to when a registered business goes to a bank for a credit facility; the bank does a check of the business financial history to determine if the bank can lend the money.



In other words, your credit score lets lenders know quickly how much of a credit risk you are. Based on this credit score, lenders decide whether to trust you financially - and give you better rates when you apply for a loan. Apartment managers can use your credit score to decide whether you can be trusted to pay your rent on time. Employers can use your credit score to decide whether you can be trusted in a high-responsibility job that requires you to handle money.



Some scrupulous companies claim that they can help individuals with their credit score for a fee; you need to be careful before engaging such people. Do not spend money on such companies that claim they can restore your credit, instead use the money to pay down your debts and you will be doing yourself a whole lot of good by doing that.