What is a Good Credit Score?

Have you ever wondered why people get denied for loans and why other people get approved for it instantly? Have you ever wondered why some people are not accepted by some companies even though they are qualified for the job?

Credit scores are a hugely important part of today's life. This particular three-digit number will determine whether you are likely to be accepted on the loan you have applied for, and determine the total of your monthly bills.

In the United States, Fair Isaac Corporation or FICO is one of the main credit score models that calculates your credit score. They calculate your credit score by using mathematical formulas from all of your financial activities. It is a calculation that is widely used by lenders, such as credit card companies and banks.

There are also three credit reporting agencies in the United States who calculate your overall credit score, Experian, Equifax, and TransUnion. Each of the reporting agencies calculations will differ, and are updated periodically to reflect your repayment behavior. Also, keep in mind that lenders and creditors can use any of the reporting agencies they prefer.

A credit score is designed to provide information to lending companies regarding whether a particular person will likely pay their bills. It will also contain reports of your past loan applications.

The score ranges are from 300 to 850. A good score is in the 725+ range. By having a high, or at least "good" credit score, you will be able to access low interest credit cards as well as low interest loans. You will also have a higher chance of receiving cost effective terms with home purchases, as well as automobile purchases.

To view your credit report and scores, click below.

Exampal Report How Dose Your Credit Stack Up How Dose Your Credit Stack Up How Dose Your Credit Stack Up