Gaining Credit Score

The length of a credit history accounts for 15 percent of your credit score. Moreover, it is the factor that you will not be able to improve fast when you need it.

A credit score is a number used in people’s bank accounts. This number tells potential loaners if a person can be trusted to pay off their loans. You can get this number by starting when you’re young and taking small loans that are easy to pay off. This will build your credit score. Credit scores take a long time to build but can be reduced dramatically if you mess up and miss paying your loans. A credit score tracks your loans and how diligent you are at keeping up with them and how many loans you take out. You want to keep your credit score number up because if you ever want to take out a loan your credit score will make or break the deal. If you have a good record and good score you have a much better chance of getting a loan that you want or need. If you have a bad credit score you basically don’t have any chance of getting a loan until it improves.

Credit scores are numbers resulted from a statistical analysis of a person 's credit history. They represent the creditworthiness of that person. Credit scores are primarily based on credit report sourced from credit bureaus. Lenders use credit scores to a

- Most important grades you’ll ever get. Your credit score sets the interest rate on any money that your borrow.

I learned from our interview that there are three credit rating agencies, Experian, Equifax, and TransUnion. These agencies use a wide variety of information about every person to determine his or her “creditworthiness” from the perspective of banks and just about any other entity that might ever consider extending financial credit to a person. Generally, a good credit score means that lenders will be willing to let you open new accounts, borrow money, and give you the lowest interest rates on any loans. Conversely, a bad credit score means the exact opposite. I learned that every late payment of any kind is a negative mark on my credit score and that makes the credit card’s policy on late payments very important. I learned that the APR is the financing charge calculated as an average percentage of interest on any amount

-After choosing the actions; it is necessary entering the financial figures and other data for calculations.

During the Financial Fitness module I learned more about my credit score and how to improve it. I also learned the different ways a credit score is made up of. A credit score is usually used to see how likely you are to pay back money that you owe. Usually banks use them to issue loans or credit card companies’ use it to decide if they want to give you a credit card and how much they want to set your limit to. It is important to build your credit score up because it will benefit you in the future when you need to borrow money or even get a job. Some jobs check your credit score before they hire you. Also if you don’t pay a bill your credit score will go down after 30 days past the due date. Some advice I learn was to get a credit card when

Your FICO scores are the most regularly used credit scoring methods all of the bureaus use. Your FICO score

For someone to understand their credit and their credit score that comes with it, you have to know what the FICO credit score is. Fico is a special company that gathers information on a person about how they spend their money, who they owe money to and use that information to interpret and come up with a score which is something like that of a rating system. With this information they can even tell if they should extend more credit to your account for those who are credit card holders.

With credit there is good and bad credit. Some examples of bad credit are credit card debt or not paying back loans.With credit card debt it’s easy to fall down a whole and end up having to pay high interest rates and owing more money then you ever can afford. Taking out loans and not paying them back is also a bad thing because loans can have high interest rates and you are just racking up more charges the longer you don’t pay. A bad credit score is considered a 660 or under.

Although there are different ways a lender will calculate a credit score, the basic credit score that people use is called a FICO score, and this is developed from four criteria. One is payment history. This is followed by your credit to debt ratio, and the final two are the length of your credit history as well as the type of credit you have. In order to build up a better credit rating, you will need to address issues that relate to these four factors.

Some factors that influence a person’s credit rating or their ability to get credit is if you pay your bills on time and don’t spend all your money on your card you should have decent credit. If you always have late fees and can’t pay your bills, you will have bad credit.

Banks take deposits from savers and pay interest on these accounts. They receive interest on loans when they pass these funds on to borrowers. The spread between the rate they pay for funds and the rate they receive from borrowers is where their profits are derived from. This practice of combining deposits from many sources which can be lent to many borrowers forms a interchange of funds

Simply putting, banks accept deposits from public; keep some of those deposits with them and lend the rest to businesses and individuals. Businesses and individuals in turn pay interest on

     Interest is the fee paid for borrowing money. Most individuals or business owners pay simple interest on a short-term loan, which is usually a loan of up to 1 year. The amount of interest charged by a bank depends on three factors: