To many, the concept of their credit score is something that shrouded in mystery. Basically, it’s a score that determines your credit worthiness. The higher your credit score, the more credit worthy you are deemed to be.
If you are a consumer in the American economy, this is something that you need to know. It doesn’t matter whether you have or don’t have a credit card. To a major extent, your credit score will determine the life style that you lead.
For one thing, it is the determining factor as to whether or not you get that loan. And if you manage to get a loan, it has an impact on how much interest you will pay. Your credit score can determine if you are offered special credit card deals such as one of the lowest credit card rates, bonus miles, and so on. And it determines whether you will be able to buy a home or if you will be forced to rent.
So, since this score is apparently so important, what exactly determines your credit score?
A number of factors go into determining one’s credit score. Probably, first among them is your payment history. A late payment on your bill will drive your credit score down. The later it is, the more it is driven down. Multiple late payments drive this score down even further. Bottom line – if you don’t want your credit score to go down, don’t be late making your payments.
A high debt balance also drives down your credit score. In other words, the closer you are to the credit limit on your cards, the lower your credit score will be.
The last major factor affecting your credit score is how long you’ve had credit for. A college student or a person who buys everything with cash will have a lower score than someone in their 60’s who has had credit since 19.
You can read more articles concerning credit card bad credit, as well as college credit cards at Susanna’s site.
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