what is a good credit score? Why is it crucial?

Credit scores can have a profound impact on our finances. For example, a good credit score could mean better terms on your loan. 

It could also be the difference between being approved or denied for a loan in the first place.

When we talk about credit scores, there are typically two significant players, FICO and VantageScore. Each uses similar factors to determine your credit score within their system.

Essentially, a credit score is a number ranging from 300 to 850 to help lenders determine the likelihood that you’ll pay your loan back to them.

Lenders will consider your score when applying for a credit card, mortgage, auto loan, or even by a landlord when you are looking to rent a property.

Many factors can impact your credit score. Some more than others, but each aspect is just a piece of the puzzle when lenders look at the risk level associated with lending you their money.

Getting your credit score is a relatively straightforward process. You can get a full credit report from each of the three credit bureaus once per year from AnnualCreditReports.com.  

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