Know Your Credit Score

January 13, 2007

When applying for a loan or a line of credit, your credit report is a huge influence on whether or not you will receive that loan or line of credit that you applying for. There are three major credit reporting agencies, and each of them tracks the purchases that make, and payments that you submit. Anytime that you apply for a line of credit, whether it is for a car loan, a mortgage, or a credit card, your credit score matters. Your credit score, also known as a beacon score, is determined by several factors.

One factor that impacts your credit score is your payment history. If your credit report shows that you made all of your payments late on your recent loans or credit cards, a bank or other financial institution may not want to take a chance on lending you the money that need, or opening the line of credit that you applied for. If you have ever defaulted on a loan, it will not only show up on your credit report, it will drastically lower your credit score. Keeping your credit score high and maintaining a clean credit history is essential if you ever want to take out a loan or line of credit.

Contributing National Payday Staff Writer

Other articles of interest: