Credit score and credit rating are a very important part of the financial society today. It may not be very forgiving, but whether we like it or not, a lot of organizations judge us based on our credit. A single number says whether we’re “credible” and how much of a liability we might be to a lender. Because credit scores are so important, everyone should know a little more about what a credit score is and how they can affect us financially.
To start off, as mentioned, a credit score is a number. This number typically ranges between 300-850. The higher the number, the better your credit. Lenders look at this number to determine whether lending money to someone is a risk and how likely they will pay back the money loaned. There are multiple factors that go into a credit score, primarily debt owed and efficiency of paying bills.
So what do you do if you have bad credit? What if you have none? There are ways to get or improve your credit score.
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