A credit score is a three-digit number that estimates how likely you are to repay borrowed money. Credit-scoring companies plug information from your credit reports into mathematical formulas that produce your credit scores.

A low credit score may not keep you from being approved for credit, but you may have to pay a higher interest rate or put money on deposit. You also may have to pay more for car insurance or put down deposits on utilities. Landlords might use your score to decide whether they want you as a tenant.

A higher credit score can give you access to more credit products — and at lower interest rates. Borrowers with scores above 750 or so frequently have many options, including the ability to qualify for 0% financing on cars and for credit cards with 0% introductory interest rates.

When lenders or card issuers “check your credit,” they may be looking at your credit report, credit score or both. You can check your own credit.


What factors affect your credit score?

Paying bills on time. Credit scores reward a track record of paying on time, every time. A misstep here can be costly, and a late payment that’s 30 days or more past the due date stays on your credit history for years and it could drop your score up to 115 points.

The information on your credit accounts is stored by credit-reporting agencies, also called credit bureaus. The three largest are Equifax, Experian and TransUnion. If you use credit, they probably have a record of it. Credit-scoring companies use the information to produce credit scores, and creditors buy reports and scores to evaluate applicants.

Reporting credit information is voluntary, and there are strict guidelines for how to do it. But creditors choose to do it because information about consumers’ past credit habits helps them make better decisions about risk. Consumers do not have to give them permission to do this.

Lenders look at more than credit scores
When you go to borrow money, a good credit score does not guarantee a good interest rate — or even approval. Nor does a lower score indicate you cannot get credit at all. Your income and other debts play a key role in some lending decisions, as lenders consider what you owe alongside what you earn and assets you have accumulated. Lenders use a debt-to-income ratio calculation to evaluate whether you have room in your budget to repay a loan.

Credit Service of America has the tools to educate our clients beyond a credit score. We have been teaching our clients just how to manage their credit and debt better than they ever have before. This is a new revelation to many. It is possible that through a better understanding of credit, how people can better their lives.


A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!

*Individual results may vary. Please call for more details and to discuss your own individual situation.