How is a credit score determined?
Your credit score is extremely important, as it determines your eligibility for all kinds of financial endeavors, such as credit cards and home loans. However, some people have difficulty adjusting their credit scores because they are not sure what the number is based on. Knowing what criteria go into the number on your credit report can help you maintain a good credit score and qualify for higher limits and better rates on your loans. A credit score may be anywhere from 300 to 850, with 300 being the most risky and 850 the most secure in the eyes of lenders. Therefore, a higher number will qualify you for a better loan. A person with a credit score under 500 is unlikely to be able to secure any type of loan. The Fair Isaac Corporation, or FICO, which determines your credit score, uses a specific formula to come up with the number on your credit report. Being aware of this formula can help you keep an eye on your credit. The most important factor is paying your bills on time, which acc
