A credit score is the key to understanding how creditworthiness is evaluated by lending institutions, as a good credit score can unlock the vault to help obtain financing.
Your payment history, loans outstanding and a general indebtedness are statistically evaluated by the credit bureaus. The big three of the industry are: Equifax, TransUnion and Experian. Based upon a compilation of that data, your profile is assigned a number between 300 and 850, with 300 being the least credit worthy and 850 being the most credit worthy.
It is this number that lending institutions use as a basis for determining whether you qualify for a mortgage or a quick escort out the lobby doors. So, now that you understand how the score works, let's look at five tips that will help you raise a bad score and win favor with those stern-faced bankers.
Sometimes people get in over their heads. They rack up so much debt that they're unable to make consistent interest and principal payments. When you're late or unable to make payments, your credit rating suffers. This reduces creditworthiness, and ultimately, it inhibits your ability to access financing.
The good news is that there are things consumers with less than stellar credit can do to improve their standing among lenders and to rebuild their credit score. In this book
, will look at techniques you can use to improve your stats.
, will look at techniques you can use to improve your stats.
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