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Credit score620 Credit Score

Do not worry: this little course requires no prerequisites … However; you must be ready to learn some pretty nifty algorithms and make some impressive calculations! Arm yourself with your pencil and let’s go!

 

If your credit score is slightly low, pay your bills on time, reduce your debt, eliminate inaccuracies in the credit profile and avoid making new demands for a few months to improve your credit score. Also, do not forget that your credit score is not the only factor that a creditor may consider when evaluating your creditworthiness.

 

History

 

The credit score system has become more common in the sixties, as a means for creditors to quickly assess the creditworthiness of a borrower. The system is being revealed as an effective way to assess financial risks over time, it was quickly adopted in many industries. Today, the system of credit score is used by creditors, insurers, landlords, employers and utility companies to evaluate your creditworthiness.

 

Algebra

 

Thousands of credit score formulas exist today for various types of assessments. Each credit score system is precise and accurate in its own scope. Credit scores that you can order online call an algorithm, designed for consumers, which gives a result close to that of these formulas. Your credit score online may vary slightly from the score used by your credit, but the scale of its results should be the same.

 

Chemistry

 

The fundamental formula credit score takes into account several factors from your credit profile. The impact of each element can change depending on your own credit profile:

Payment History – Good history of timely payments help improve your credit score.

Outstanding balances – balances more than 50 percent of your credit limits can cause damage to your credit. Try to keep your balances below 30 percent.

Credit account history – A history of credit established make you a borrower with lower risk level. Before applying for a loan, think twice before closing the oldest account.

Recent inquiries – When a company or creditor performs a credit check, a “principal claim” is added to your account. Exercise restraint in making requests for new credit.

Types of credit – A healthy credit profile has a good mix of credit accounts and loans.

 

Economy

 

When you are about making a major purchase, be sure to check your credit report and your credit score from your credit agency. By checking your credit score and profile a few months before your application for credit, you will have a good overview of your financial health. Wondering if your credit score is good? If your score is above 620, you will probably qualify for a standard loan. If it is below 620, you may have difficulty obtaining new credit.

 

 

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