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The better your credit score is, the more financial opportunities you will have. A good credit score means that you are financially responsible and are able to pay back bills on time and pay back any debts or loans in a timely manner. However, an average or bad score can have negative consequences when it comes to finances. Credit Score Checks When it comes to checking your credit score, keep in mind that you are not the only person who has access to the number. A credit score is an important indicator of your level of financial responsibility and can be a valuable resource for certain individuals. For example, if you are applying for a property rental, your landlord will likely ask to obtain a copy of your credit score. In doing so, he or she can see whether you have been late with payments in the past or are currently loaded down with debt. The landlord will also have access to certain information such as any bankruptcies or evictions that you have faced in the past. Creditors also keep a close eye on your credit score number, as this is an important piece of information that they will use to determine whether or not you are credit worthy. Just as other people can check your score, you can take a look at the number any time you wish. This is especially important if you use a credit card, as it will allow you to see whether you are able to maintain a solid score. Remember that the higher the number, the better the overall score is. If your credit score number is low, there may be ways to bring the number back up by exercising financial responsibility. Understanding the Credit Score Range Although you may know that a higher number equals a better credit score, specific numbers can make a big difference. When it comes to checking your credit score range, just one number can differentiate one category from the next. If your number is 720 or higher, you are considered to be in the top tier range. This is the "excellent" category and it means that you will be given optimal interest rates along with repayment terms for any existing loans. If your score falls between 680 and 719, it is considered to be very good and you will still get good interest rates. A score of 620 to 679 is average and may have an impact on future loans. Numbers between 580 and 619 are considered to be poor credit scores. It is still possible to get loans, although you can expect higher interest rates and finance charges. A score of 500 to 579 is very poor and there be pronounced loan limitations. Scores of less than 500 are very bad. When it comes to credit scores and age, generally the older you are the higher your score is. For example, adults ages 18 to 24 have an average score of a little over 625. However, individuals ages 25 to 34 and 35 to 44 generally have average scores around 625. Adults who are in the 45 to 54 age group experience a much higher average number of around 650. Those who are 55 and older typically have an average score of almost 700. Good Credit Scores Whether you want to maintain a good credit score or need to raise yours, there are several options. Some of the most important are to repay outstanding bills in full and on time, and to avoid getting close to your credit card limit. Be sure to save credit card applications for the cards that you truly need. If you have several credit cards, you should be aware that opening up additional lines and closing them can have a negative impact on your credit card score. It is also vital to note that if you have many credit cards and you close several accounts that you will need to avoid getting too close to your credit card limit. A credit score is something that can be worked on and built up for decades. If you are young or just starting a credit account, remember that it takes a long time to help build up or improve your score. A good score is beneficial when it comes to situations such as applying for a loan for your house or if you are applying for real estate rentals. The higher the credit score number, the better it is. However, even if you have a lower number, you can work to improve your score in a number of ways. Joy Mali is an active blogger who is fond of writing articles on Finance and educating people to monitor their credit report on regular basis to minimize the risk of fraud. Follow her on Twitter to know more on how credit score impacts on your financial life.
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