In this era of information technology, you cannot hide anything from others. But it does not mean that you are every time exposed to some unhappy incidents. This can be a positive point for you to get a good job or comes in the good books of your boss. You might get confused, what am I talking about? Well, I am talking about credit score, which now a day is proof of a person’s credibility.
A credit score is the evaluation of a person’s worth as evaluated by scoring agencies. It started in the United States but now is in use in different countries of the world. Money providers such as banks and credit companies produce credit scores of their customers based on their attitude regarding time payments and loan returns. Apart from these offices, mobile companies, insurance companies, and landlords use the credit scores of a person for carrying out dealings with them giving a house on rent or selling the property.
A credit score is a numerical value that reflects the laudability of a person in terms of payment of bills. The score is calculated with information from Experian, TransUnion, and Equifax. It is a three-digit number, and the range for credit score lies between 300-850. If a person has a credit score in the range above 600, it is good, and above 700 it is excellent. Now, what do you get if you have a good credit score? You get a lot of benefits with good credit scores. You can get a loan with a handsome amount, get a better insurance rate, and also a better living place on rent.
But with bad credit scores, you are not looked upon as a reliable person. As bad credit score comes with late bank payments, unable to return loans and unable to pay rent on time. So with such background, you can deprive yourself of reasonable insurance rates, get credit from banks, or have a good living place.
Credit score solely includes your on-time payment records, the number of active accounts you are having and the available balance you have. It has no link to your caste, religion, sex, and nationality. A person can have more than one credit score, and it is due to the number of times data enters for your payments.
You can also get information about your credit scores on Karma free. The data for credit score on Karma comes from Equifax and TransUnion.