What Does My Credit Score Mean
What does my credit score mean? This is a question that many people really don't know the answer to. Credit is a big part of our lives, whether you have good, bad, or no credit. It determines how well companies will trust our financial sense. If you have wonderful credit, you will have an easy time financing the things that you want in life. If you have bad credit, well - there's hope. So just what does my credit score mean? It is a score derived from a model system that creditors use. It is a score that factors in information about you and your past credit experiences. It takes into account your bill-paying history. Do you pay on time, or miss payments? Do you have any outstanding debts now? It takes into account the number of and types of accounts you have. The major types are bank accounts and credit card accounts. It also takes into account how long you have had these accounts. Sometimes it is hard to say whether something will be taken as a help or hurt to your credit rating. However, if you use common sense, pay your bills on time, and don't get in debt too much, you should be fine. Creditors often take your information and compare it to people with similar reports. The people you are compared to are people that they have dealt with before. If your financial past is similar to people who never meet their financial responsibilities, the answer to "What does my credit score mean?" is going to be simple. It means that you are a credit risk and need to try to improve your rating. It is hard to get very far in life with a bad credit rating, and if at all possible, you should make sure your credit record is a good one. Everyone makes mistakes, but mistakes that affect your credit will stay with you for a long time.
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