What is a Credit Score?
A credit score is a number that signifies your money information. This score is used by all financial institutions or individual lenders to assess the risk involved in giving you credit.
The money count is calculated on the base of the following.
• Address.
• Salary.
• Credit Dept.
• Bankruptcies.
Using the above factors an algorithm is decided and using this algorithm a count is generated. People with low credit scores are referred as high risk borrowers and people with high credit scores are referred as low risk borrowers. Banks and other lender set different interest rates for high and low risk borrowers.
In general, a good count is somewhere in the range of 700-850, while an average score would be around 550-700 and anything below 500 is considered as a poor count. Remember, it becomes difficult to borrow loan if you have a low points and if you do manage to get loan, the interest rate charged will be quite high. So improve your count.
For further details visit Free Credit Score Online