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| | | | | Good Credit Score Basics by Lillian R. Long | | | No doubt, every cardholder is concerned about obtaining high credit score. Nowadays credit score determines our financial life. These three numbers, one from each of the major credit bureaus, define whether you are eligible for the best credit card and able to enjoy rewards and low APR, or if you can count only on loans with high interest rates and have to struggle with debt.
Credit score often defines what house you can afford, what car you will drive, what places you will visit on your vacation. Today you will hardly find a person who does not care about the credit score and how to raise it. But still there are many people who have no idea about how credit score is calculated.
How credit rating is determined? Credit score is a numeric rating of your good or bad credit history that includes your payment abilities, the amount of debt you owe, and the types of credit you carry. Your good or poor credit rating is reflected in the credit report.
Every creditor: a vendor, lender, landlord, credit card company, bank, reports to credit bureaus all your achievements and delinquencies on credit. The three major US credit bureaus are Equifax, TransUnion, and Experian. Credit bureaus collect this information and are entitled to provide the recorded information for any lender that makes inquiry about your payment abilities in case you apply for a credit card, loan, or mortgage.
What credit score consists of? Credit score is the number that reflects your payment history, the amount of debt you currently owe, the length of your credit history, forms of credit you use, your most recent credit activity, etc. When it comes to determine what type of credit history you have: good or bad, the great emphasis is placed on your payment history and your current debt.
Only having learned your credit score, banks and lenders are able to make a decision on your credit request. If your credit report reflects a high credit score that means you have good credit, you are sure to get a beneficial offer with low interest rates, no annual fee, or rewards.
Meanwhile if you have bad credit, your credit opportunities can be restricted badly. The thing is, every credit card company has its own opinion about cardholders with low credit score. One lender can consider a card owner with bad credit as a potential client, who has made some financial mistakes in the past but now is going to achieve better results.
Another creditor will probably deny your credit application, because of bad payment history that is often considered as a lack of financial responsibility.
Now you know more about credit score and realize its high importance. Good credit rating is the key to credit eligibility. If you want to enjoy best credit card deals, you have to invest in raising your credit score and obtaining excellent credit. Having established good credit history, you will be qualified for instant approval credit cards, cash back deals, plastics with rewards, and other good credit cards.
| | | | Article Source : Article-treasure.com | | Publication date : 08-16-2008 | | | | Article by Lillian R. Long | | | | Lilian R. Long is a financial consultant and writer in one. She knows a lot about credit card problems and the ways to get out of debt. Read her articles and you will learn where to get free credit report, how to raise credit score, and how to benefit from credit cards. | | | | Keywords : credit score, eligibility, credit cards, bad rating | | | | | |
