Do you know about your credit score? Everyone should take time to review, manage and boost their credit score. Credit score will not only affect whether you can get mortgages, credit cards and loans, it can also affect attainment of mobile phone contracts, monthly insurance premiums, opening of bank accounts, job applications and more.
Every individual has a unique credit score. It is a three digit number calculated based on the credit history from your credit report. A credit score makes it easier for individuals to comprehend their credit standing.
It is also sometimes difficult for an individual to determine which part of the data is considered important to lenders. When it comes to locking in an interest rate, the higher your score, the better the term of credit you are likely to receive.
Your credit score is a key indicator of your credit risk, used by lenders to determine your creditworthiness at the time of any related applications.
Good credit management leads to higher credit scores, which in turn lowers the cost that you need to borrow. Living within your means, using debt wisel and paying your bills consistently and on time are smart financial moves.
Good credit management helps improve your credit score, reduces the amount you pay for the money you borrow and puts more money in your pocket to save and invest. It is always a good idea to make monitoring your credit score a part of your financial routine.
This will allow you to be better prepared to work with your credit standing when you are about to make major purchaeses such as buying a house, car or taking a loan to start a business.