October 31, 2008

Why a credit score is so important

There comes a time in every one’s life when there is going to be a credit score done, this may not even be for credit as such like loans or credit cards, because many companies use a credit score to evaluate people for services such as renting a place to live.

So although a person may not intend to take out a loan or mortgage, their credit score is still going to be used, which is why it is essential that everyone keeps an eye on what their credit score is saying about them, because it does not necessarily mean that it is accurate.

The credit score is made up of money owed, payment history, length of credit history, new credit and the type of credit used. Surprisingly age, job and location have nothing to do with a credit score.

A bad credit score will affect a person’s life without then even knowing anything about, an early indication of a bad credit score could be if they apply for a mobile phone on contract and it is rejected, this is the time to look into their credit score.

Source [True Vue]