Credit scores are used by lenders to decide whether you’ll get a loan or refinance a mortgage. However, the use of credit scores has become far more widespread. Among those who might check your credit score are:
* Insurance companies. If your score is low, you could pay more for policies.
* Landlords. Your score might determine whether or not you’ll be accepted as a tenant in an apartment.
* Employers. If someone in your family seeks a job, a good credit score can be the difference between being hired or being rejected.
Therefore, you should make an effort to keep your credit score as high as possible. Your score reflects:
* The amounts you owe on your credit cards. Using too much of your allowable credit line can trim your score.
* The length of your credit history. The longer you have responsibly used credit, the better,
* Your payment history. The best way to keep your score up is to keep making timely payments.
* Your new account activity. If you have applied for many new accounts recently and opened one, your score may be reduced.
* Your credit mix. Having (and using responsibly) several different types of credit can boost your score. That might be a home loan, auto loan, store credit, etc.
