Your credit score is one of the factors that banks use to determine whether to accept your loan application. And with your credit score, banks determine how much they are willing to lend you. It also impacts the interest rate and lengths of the term to be offered. Hence, the need to fix bad credit.
The smaller the credit score, the higher the risk you pose to potential lenders. Likewise, an increase in credit score translates to better a loan or lower interest rates. Your credit score reveals a lot about your financial history. Your economic history comprises borrowed amounts, inquiries, and records of loan repayment.
Checking on financial history can increase credit. Closing down of unused credit accounts lowers the credit score. To improve your credit score, you should pay off your debts and use a thin credit file.
Therefore, it is vital to learn the meaning of credit before delving into credit score repair.
What is a Credit Score?
A credit score is a number given out to represent your weight and trust as a borrower. Your credit score is a three-digit number. This number ranges between 300 and 850 depending on the agency used to calculate.
Other agencies grade your credit score between 0 and 1200. With new changes roping in every day, then expect the numbers to change. However, the emergence of new agencies has no significant impact on credit score repair.