A credit score is the three digit number even to express your credit worthiness. This number is based on your credit report. Your credit score is a numerical summary of your payment history, credit history, new accounts, credits used, and total debts.
Banks, financial institutions, lenders and employers use this number to evaluate your credit worthiness. Interest rates are dependent on the credit score.
The score ranges from 300-850 based on the FICO model. The highest score, using this model is 850. FICO is applicable and recognized almost globally.
Getting the highest credit score has perks and advantages you may want to take advantage of. Here are some advantages you can enjoy.
Best benefits. Attaining the highest credit score will entitle you to the best rate on your mortgage, credit cards, and other type of loans. These days prospective employers may access your credit file to evaluate you as a person. Having a good score can increase your chances of getting hired.
Best risk category. Having the highest score will land you in the best risk category. Being under this category will give you loan approval at your preferred interest rate.
Best credit limit. There is only one thing most people look for in a credit card application. This is the credit limit. A larger credit limit is given to applicants with the highest credit score.
Getting the highest credit score gives nothing but the best of what is being offered. If you do have the a high score, then you can plan your next loan or credit application. If you are seeking for a job, your credit score will help you land on that job in no time.
What if your score is low? You still have a chance. It is not the end of the world. There are many ways to get from where you are on the scale to where you need to be. Start by improving your scores.
Get your credit report. You have to keep regular track of your report. Report any errors or inaccurate information. Anything that would damage your credit should be repaired.
Control your credit card use. Do not make necessary purchases that just accumulate as debt into your account. Make sure that you pay your accounts on or before it is due.
Pay off debts. To boost your score you should pay off your balances and start on a clean slate. Do these things and you will have a higher score in no time at all.