Credit score is a three digit number given to you basing on your commitment to the bills and dues of credit cards. Once you pay all the debits on time, lenders feel quite positive about you and prefer giving better offers on loans at the lowest possible interest available in the market.
The time you pay your bills to the lenders, bankers and business owners will be passed to credit reporting agencies. They maintain all your track record in the name of credit report. They also allot a score and it reflects your commitments to the debits that you have taken.
If you pay all your bills on time without delay, there will be a good and positive reflection on the credit report and you will have a good score. This makes you a reliable resource to offer loans and best mortgages and because of lower interest rates you are going to save a lot of money in the long term. Thus having a good three digit score is very important thing and you shall take care of it.
To have a good score one important step that you have to take is using the lower value of the available credit. If you are using less than fifty percent, your financial score will not be negatively effected. You shall also take care that your monthly bills other than mortgage is less than twenty percent. If this limit is crossed you shall find that you are close to the danger of financial problems and take corrective measures.
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