What is Credit?
Credit is the ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future. There are many reasons to have and maintain good credit. A good credit score is an important attribute for any individual to have. While you may not want to block yourself into countless loans with high interest rates and no end to the payments in sight. Loans are a necessary aspect to life. Building a credit history and maintaining a high credit score can have a dramatic impact on your quality of life now and years in the future when you're considering applying for a loan or prepaid debit card.
Reasons To Have/Maintain Good Credit
Starting a Business
- Starting a business and need a business loan your credit score and history will factor into your eligibility for small business financing.
- Buying a car
- Buying a House
- Getting a Job
A credit score is a three digit number calculated from your data-rich credit report and is one factor used by lenders to determine your credit worthiness for a loan or credit card. Its Important to have credit score because history determines what loans you will qualify for and the interest rate you will pay.
Ways to Maintain a Good Credit Score
- Know what goes into a good credit score.
- Pay your bills on time.
- Keep your credit card balances low.
- Manage your debt.
- Don't close old credit cards.
- Limit your applications for new credit.
- Watch your credit report.
- A long credit history will help your score.
Ways to Improve a Credit Score
Steps to Improve Your Credit Score
- Pay your bills on time..
- Keep balances low on credit cards and other "revolving credit."
- Apply for and open new credit accounts only as needed.
- Pay off debt rather than moving it around.
Great Credit Score // Bad Credit Score
The best credit score you can get is from 760-850 as you may see in the picture below color green. Bad credit score is between 300-619 (in red). In the picture below it shows the credit score from poor to average to excellent.