What You Need to Know About Credit Score
Television programming is often saturated with advertisements for credit reporting providers. When combined with the increased incidence of identity theft, consumers are more aware of their credit scores than ever before. That said, many people do not fully understand how these scores are derived, or more importantly, how they can improve theirs.
Credit agencies gather a great deal of information on the spending and saving habits of consumers. Depending on a number of factors, such as income, debt ratio, assets and payment history, a consumer might seem like either a sensible investment or a severe risk to a lender. For those reasons, credit bureaus often condense the vast information into a mathematical metric, which is the credit score. This allows lenders and merchants to run a credit score check and use that information to make quick, effective decisions regarding the credit history and worthiness of a customer.