We know that credit score is very important to us. It can affect all aspects of our lives, including the fact that you need to submit relevant certificates to buy a house and car, and you need credit score to mortgage the loan. If you want to make an unsecured loan, then credit score is even more important. Since this thing is so important, if we know how to calculate it, And after we can understand its calculation process, we may be able to be a person with good credit and pave the way for a convenient life in the future.
First of all, let's understand what credit score is?
It is a comprehensive compilation, consisting of information provided by three credit bureaus. This information will include almost all your credit tracks, such as whether you have paid the water bill, whether you are a person who pays the mortgage on time, and what other things you have done, whether you have ever escaped debt, whether you have done some illegal and criminal things, whether you are a good person or a bad person, and what kind of state you are currently in, What you have experienced before has affected your credit and so on. These things are recorded one by one. Then if what you do will affect the fluctuation of these figures, when you want to apply for some loans with credit score later, the lender will attach great importance to credit score. If your credit score is high, generally speaking, the amount you can borrow will be relatively large, And the amount you pay will also be relatively lower, so a good credit score will undoubtedly bring you a lot of convenience and save you a lot of money in life.
Factors that have the greatest impact on credit score
Although there are many factors that make up the credit score, there is one thing that has a great impact on the credit score, that is, whether you pay on time, such as whether your credit card pays the interest and principal on time, and whether your mortgage is paid on time, including whether you pay the rent on time if you rent a house, and if you are purchasing a car and need to pay the car loan, whether you have any overdue situation, If you are often overdue, this behavior will cause your credit score to drop significantly. In addition, you will also be affected by another factor, that is, if your account has opened multiple bank accounts, and each account's card has a certificate of bad credit, which is also very detrimental to your credit score.
What standard do you want to meet?
Like anything else, we can choose the goal we want to achieve. Perhaps the most important thing you want to do when you are a student is to enter a famous university. In terms of credit score, you can also get it through hard work. Generally, the average score of credit score is 723. If your score just doesn't differ much, then you are in good condition. If you use this score to make loans, It is often able to win over most people. If your credit score is more than 750, you can almost say that your credit is very good. You can even use these good credit scores to save you a lot of money. But if your credit score is less than 600, you should pay attention to it. At this time, you should focus on your detailed credit report, and then find out the problem to solve.
