As part of our credit countdown to 2018, it’s important that you know what a credit score is. So, let’s get started and build your credit score knowledge.
What is a credit score:
Your credit score reflects the information found in your credit report and is used to determine your creditworthiness. Basically, it tells lenders how likely you are to default on an obligation.
What is a good credit score:
Credit scores range from 300 to 850, and the higher the score, the better. While no formal definition of a “good” credit score exists, generally, a minimum credit score of 680 is considered good.
Why your credit score is important:
Credit scores are used in almost every part of our lives, from credit cards and loan applications to employment opportunities. And those with good credit scores have access to more financial products, lower interest rates, and better terms.
How your credit score is calculated:
Your credit score is based on payment history, how much you owe on your accounts, credit history length, types of credit you have, and any new credit such as recently opened accounts and credit inquiries.
Credit scores are important, as everyday life can be negatively or positively impacted. Your credit score determines if you are approved for credit cards and loans and can even determine if you are billed or have to prepay your monthly utilities.
If you are one of the 100 million Americans paying rent, solutions like RentReporters can help you build and improve your credit score by reporting your on time rent payments to TransUnion.
Get ready for 2018 the right way by taking control of your credit today.
For more information on RentReporters, visit here.