Why is your credit score important?
Posted by Alfonso "Fonz" Salazar on
Everyone is always concerned about their credit score; and it is understandable why. Your credit score can determine whether you get that brand new car you've always wanted, a house for you and your family, and even keep you from insurance and employment. First you need to understand what makes up your credit score.
There are 5 factors that determine your credit score:
- previous credit performance
- current level of debt
- the time that the credit has been in use
- the types of credit available
- and the pursuit of new credit
Out of each of these factors, your previous credit performance is the most important. Why is that? This is because it shows those looking at your credit how well you paid or are paying off your previous debt.
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