Understanding Your Credit Report Score
Contributed by Rachel s Pickett
Understanding Your Credit Report Score
Who Can View My Credit Report Score and How is it Used?
Your credit report score can be viewed by any lending company that is extending you credit. When you apply for a credit card, bank loan, new auto loan, home mortgage, or any other type of credit based financing, it is certain that your credit report score will be checked first. Your credit score is checked to make sure that you have good credit history and to assure the financial lender you will pay them back for all monies borrowed. Understanding how your credit report score is used, is beneficial to you getting the credit you want or need.
How is My Credit Report Score Calculated?
Your credit report score is calculated by a system called credit scoring. Personal information about your past credit history such as bill payment history, types of credit you hold, how much credit you owe, and how much credit has previously been disbursed to you. Other personal information like your name, address, social security number, and birth date are also included in your credit report score.
Credit scoring works on a system of points. When a financial institution reviews your credit report you are given points for paying bills on time, maintaining a low balance on credit accounts, and also for the length of time you have been extended credit. When the proper points are totaled, you have a credit score. Most credit scores range from 300 to 870, the higher the better.
What Can I Do To Improve My Credit Report Score?
There are several ways that you can improve your credit score. First, ask yourself a few questions.
