What is a Credit Score?
Credit scores are used in order to understand how creditworthiness is evaluated by lending institutions, as a good credit score can unlock the vault to help obtain financing. Payment history, outstanding loans and a general indebtedness are statistically evaluated by the credit bureaus.
The big three of the industry are: Equifax, TransUnion and Experian. Based upon a compilation of that data, your profile is assigned a number between 300 and 850, with 300 being the least credit worthy and 850 being the most credit worthy.
It is this number that lending institutions use as a basis for determining whether you qualify for a mortgage or a quick escort out the lobby doors. So, now that you understand how the score works, let's look at five tips that will help you raise a bad score and win favor with those stern-faced bankers.