DON'T LET YOUR CREDIT SCORE CONTROL YOU! YOU CONTROL YOUR CREDIT SCORE

DON'T LET YOUR CREDIT SCORE CONTROL YOU! YOU CONTROL YOUR CREDIT SCORE

Credit is a tool that can be used for good but may be problematic if you don’t know how to use it correctly.

Credit allows companies and consumers to purchase things they need. However, not only that, it gives the power to use this money to invest and increase a capital. Don’t allow yourself to pay too much interest when buying a car, a house, obtaining a loan, etc. Save money by gaining knowledge and taking control of your credit!

Your credit history is documented in credit reports by these three main bureaus:

  • Experian

  • TransUnion

  • Equifax

Lenders share borrower information with these agencies to ensure that all lenders can see a potential borrower’s creditworthiness. You can request copies of your credit reports weekly for free at Annual Credit Report.

FICO score is the credit scoring model most used by lenders

The score ranges from 300 (deficient) to 850 (exceptional) and is calculated based on 5 factors:

  • Payment history - 35%

  • Amount owed - 30%

  • Length of credit history - 15%

  • New credit - 10%

  • Credit Mix - 10%

Some benefits of good credit

  • Lower interest rate

  • Higher credit limits and loan amounts

  • Better qualification odds

  • Smaller or avoid security deposits

  • Good reputation and negotiating power