Question

Tell what ways you can have a bad and good credit score.

Answer 1

Answer)

A credit score is the score or financial expression used by the credit agencies to calculate the creditworthiness of an individual. A good credit score represents the person ability to apply for more hassle free credit in future and also it has effect on the interest rate. Credit score depends upon several factors such as effective credit utilization, credit history, payments related to past credit. Timely payment of the bills and other past credit ensures the good credit score. How often a person pays his bills in time are the most important factors for having good credit score. Continues delays in bill payments can significantly have negative impact on the credit score. The next factor that plays important part in determining the credit score of an individual is based upon the credit utilization or the amount of the debt being shown in the credit history. Next factor is the length of the credit history. Longer the length of the credit history better is the creditworthiness of an individual. More Inquiry about the credit history can decline the current credit score. More an individual applies for the credit facility, more people request for inquiry of the credit history, which lower the credit score.