{"id":2445,"date":"2019-01-11T16:02:18","date_gmt":"2019-01-11T22:02:18","guid":{"rendered":"http:\/\/payment1.flywheelsites.com\/?p=2445"},"modified":"2026-06-23T02:17:16","modified_gmt":"2026-06-23T02:17:16","slug":"what-to-know-credit-score","status":"publish","type":"post","link":"https:\/\/payment1.com\/es\/2019\/01\/what-to-know-credit-score\/","title":{"rendered":"What You Need To Know About Your Credit Score"},"content":{"rendered":"

Your credit score is critical in your financial life, and if you are not aware of it at this point, it is high time you equip yourself with the right information so you understand exactly what credit score is, how it is determined, what affects it, and how to maintain good standing.<\/span><\/p>\n

If you\u2019re curious about how the credit system works, and what you can do about it, this article will serve as your quick credit score 101 course.<\/span><\/p>\n

What is a credit score?<\/span><\/h2>\n

First things first: what is a credit score and what is considered a good credit score?<\/span><\/p>\n

The entirety of your financial life boils down to just one number: your credit score. A credit score is a three-digit statistical number, anything between 300 and 850, that reflects your creditworthiness based on an analysis of your credit files.\u00a0<\/span><\/p>\n

There are major credit reporting agencies, and each of them has its own scoring system. This is why borrowers often find different credit scores, all of which indicate your financial health and how you handle debts and credits.<\/span><\/p>\n

Additionally, all information from major credit bureaus is consolidated by FICO (Fiar Isaac Corporation) to generate a different value, called the FICO score. Apart from your credit score, your FICO score is used by lenders, employers, vendors, and landlords to help inform them about your borrowing history.<\/span><\/p>\n

Essentially, your credit score is what determines whether you can get that a loan or not and at what interest.<\/span><\/p>\n

A score of 720-850 is an excellent credit score. It is considered a \u201cperfect score,\u201d actually. Having this credit score means you get the best possible rates on loans, credit cards, mortgages, etc.<\/span><\/p>\n

If you can maintain a credit rating in the above range, you are more like to receive good credit card offers, qualify for loans easier, and receive lower insurance premiums. You continue enjoying these benefits, albeit at decreasing scales as your credit score starts dropping into the 681 to 720 range.<\/span><\/p>\n

If you go below 681, into the 641 to 580 score range, you might have a hard time getting loans approved, depending on the institution or loan provider. Should you get approved, expect a higher-than-average interest rate. You also risk getting denied credit card applications.\u00a0<\/span><\/p>\n

A poor score is anything under 640. Getting this score means being considered a high-risk borrower, and you don\u2019t want to be tagged as one. This also means that your credit card interest rates will be higher than average and you can\u2019t qualify for a typical loan.<\/span><\/p>\n

What is a Credit Report?<\/span><\/h2>\n

Basically, a credit report is a financial statement that contains information about your current credit situation and credit activity. It tells you and lenders about your loan payment history as well as the information on your credit accounts. Usually, your credit report features the following:<\/span><\/p>\n

Personal Information<\/b><\/p>\n