Having a good credit score is important because it shows lenders how you handle credit and manage your money. But what factors are used to calculate your personal score?
Each time you apply for a loan, credit card, or mortgage, the lender will pull your credit score. This three digit number helps lenders determine how likely you are to default on a loan. It also plays a role in deciding how much they can lend to you and at what terms. Besides lenders, your landlord, cell phone and utility company might look at your score. They use this number to determine the amount of your security deposit and your payment plan. So let's take a look-see at factors that affect your credit score.
See any spots for improvement? If your score isn't where you want it to be, use this chart to see how you can make some changes. Remember that your credit score has a big impact on your financial life, so checking and maintaining your score is very important.