Credit Score: Some Things You Might Not Know
These days, credit score is arguably one of the most important numbers in our live. Your credit score determines many financial things. Some example where credit score has a major influence are renting an apartment, financing a car or home, and applying for a credit card. In these condition, your credit score play its role to determine how much you can borrow, interest rate, and even can/can’t you borrow.
Now if you are already aware of the importance of your credit score, it is wise to look deeper into your credit score… Let’s start, shall we?
Credit score is basically a mathematical system that measure your credit risk, and the most commonly used form for this is called the FICO score. So what is exactly a FICO score good for? well, the FICO score is normally used to evaluate your worthiness for credit. To evaluate your score, you get a certain amount of points based on the information that is listed in your credit report. The highest score possible is 850 and the lowest is 300. A score of 650 or higher generally means that your credit is pretty good, however, until you reach 850, there is always room for improvement.