If you don’t understand your credit score then you should know that you are not alone. In fact, it is estimated that 70 percent of people in the United States do not even know that a credit score exist. This is unfortunate because the credit score is important. For more information on how to improve your credit score please visit http://creditscorefox.com.

1. Understanding Your
Credit Score
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2. Understanding Your Credit Score
www.creditscorefox.com
If you don’t understand your credit score then you should
know that you are not alone. In fact, it is estimated that
70 percent of people in the United States do not even
know that a credit score exist.
This is unfortunate because the credit score is important.
It could mean the difference between being approved or
denied of a car loan or a home mortgage. Understanding
your credit score is not at all difficult.
If you will be patient with this article and read it until the
very end, you would already have a basic understanding of
your credit score.

3. Understanding Your Credit Score
www.creditscorefox.com
Credit score defined
The credit score is actually a three digit number that can
range from 300 to 850. The higher your score, the greater
chance you have of being approved of a loan or a credit
card and of having to pay a low interest rate.
This is because a high score is given to individuals who
have shown great responsibility in paying off bills and
other financial obligations in the past. Lenders usually just
look at the credit score instead of digging up a person’s
credit report because it is much easier and more
convenient to do so.

4. Understanding Your Credit Score
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What’s a FICO score?
FICO score is actually just another name for the credit
score. FICO stands for Fair Isaac & Company. It is the name
of the company that developed the credit score. So when
somebody is talking about the FICO score he or she is
actually referring to the credit score.
What’s a good/bad score?
If you have a score above 700 then you should congratulate
yourself for having a good score.

5. Understanding Your Credit Score
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If you have a score of 720 and above then you can just sit
back and relax and continue what you are doing to
maintain your score. If you have a score lower than
700, then that means you have work to do and you need
to raise your credit score. No matter how low your score
is, you can always do something about it so you don’t have
to feel desperate.
What makes up your credit score?
You credit score is made up of different components.
Thirty-five percent of it comes from your payment history.

6. Understanding Your Credit Score
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This is the reason why it is so important that you pay your
bills on time and that you don’t miss any payment
deadlines. Thirty percent of your credit score comes from
amount owed. This refers to the amount you owe in
relation to your credit limit.
Having a gap between the two is important. Fifteen
percent of the score comes from the length of credit
history. The score takes in your oldest account and the
average age of your other accounts. Ten percent is from
new credit. This is why you should not open several
credits accounts at the same time.

7. Understanding Your Credit Score
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The final 10% comes from credit in use. This refers to the
different kinds of credit you have.
Now that you have a better understanding of your credit
score, may you have a better appreciation of the need to
have a high score?
Go here
http://creditscorefox.com/2013/02/24/understanding-
your-credit-score/ to learn more why understanding your
credit score is important.

8. Understanding Your
Credit Score
Brought to you by:
www.creditscorefox.com