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If the number of anniversary candles is the most important thing in childhood, as we grow up we welcome other important numbers in our lives: paychecks, credit cards, bills, rents and other similar factors. As a matter of fact, credit scores represent one of the most important numbers in our adult life. However, to understand the astronomic dimension of this area, it is important to state that credit scores represent numerical equations that enclose statistical analysis of a person’s credit files, or to be even more specific, personal creditworthiness. In general, credit scores are used by lenders or credit card companies to evaluate the potential risk that accompanies the decision of lending money to consumers. Credit ratings can determine not only if you qualify for a certain loan, but it will also determine at what interest rates and credit limits. Moreover, credit scoring is not limited to banks, but it also includes other organizations and institutions such as insurance companies, mobile companies, landlords and many other governmental departments. Thus, it comes as no surprise that good credit rating has become the fundamental mission of every adult. How to have good credit? To answer that question, you should confront your payment history reported on your credit report. So, if this credit mirror reveals a clear history of payments made on time and no discrepancies whatsoever, you can consider yourself halfway there, or more exactly 35%, which is the exact influence of this criterion. The next part of the equation is to determine your actual credit score. Needless to say, this factor involves a balance that associates your credit card on the one hand; and your debt on the other hand. So, if you owe more than half of the credit, your mission is trembling in the balance as you read. However, don’t let this aspect discourage you. If there is a problem, there is a solution. To turn the balance back in your favor, it is vital to pay off all your credit cards. Once you have covered your debts, you should not abandon these credit cars, but use them continuously to create an ideal balance and implicitly, to add high points to your credit score. Certainly, this clear credit history won’t happen in a heartbeat or over night, but during long periods of well balanced rates. Furthermore, another important point is that your credit history doesn’t host multiple accounts opened recently or new accounts opened in the same time. All these elements have been summed up into a globally recognized chart that presents the fallowing classification: excellent credit is indicated by a value higher than 730, good credit can be situated between 700 and 729, average credit is placed between 670 and 699, and the last level, below 585, poor credit history. In conclusion, while the extreme peeks of this credit score chart 350 and 800 are very hard to reach, 720 qualifies as the star number everyone strives for in order to obtain good credit rating, and implicitly, low interest rate credit cards. Too often, individuals in today's society neglect these aspects and end up possessing mediocre credit scores that will later on ruin any chance of obtaining loans with fair interest rates. Don’t choose to be one of them. For more resources about good credit rating or about how to have good credit or even about Good Credit, please review these links.
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