What is a Credit Score?

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What is a Credit Score?

Credit agencies will calculate your score each time a copy of your report is requested, based on the information currently in the report. That means your credit score is likely to fluctuate from time to time, based on whatever information is currently being submitted.

An “A” rating will net you extended lines of credit offered at low interest rates. A “B” or lower rating doesn’t necessarily mean you’ll get turned down for credit or a loan, but you may be approved and then offered higher interest rates than someone with an “A” score.

The following are some ways to rack up a good score:

  • Own your own home
  • Live there several years
  • Hold your job for a long time
  • Carry large balances on your credit cards but make timely payments

Ways to damage your score:

  • Move often and live in rental housing
  • Change jobs often
  • Pay your bills late
  • Pay less than your minimums

Want to improve your credit score? Read our tips.

 

 


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