Why Getting a Good Credit Score is Important
A good credit score could mean better terms on your loan. It could also be the difference between being approved or denied for a loan in the first place.
Essentially, a credit score is a number ranging from 300 to 850 to help lenders determine the likelihood that you’ll pay your loan back to them.
Many factors can impact your credit score. Some more than others, but each aspect is just a piece of the puzzle when lenders look at the risk level associated with lending you their money.
There is more to it than the amount of debt, but the easiest way to think about it is the less debt you have, the better.
Credit Card Usage
Credit cards can be a double-edged sword. Using them will help build credit, but too much will hurt your credit score.
Credit and Loan Applications
A hard credit check will lower your score, so don’t apply for more than one or two credit cards and keep the loans to a minimum as well.
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