Behind the Curtain: Credit Score Factors Revealed

With as much buzz surrounding credit scores and their importance throughout the recent economic crash and recovery, you would think that all Americans would be well aware of how credit scores are derived and what they can affect. Surprisingly, 42% of Americans are unsure of how credit scores work and how important they are in most all big purchases. If you are thinking of making a purchase such as a home, your credit score will determine the interest rate you receive. The higher your credit score, the lower the interest rate, which will could save you thousands of dollars in the long run. There are five main factors that your credit score is based on. These include your credit history, how much you owe, the longevity of your credit history, your credit mix, and the amount of new credit you have. Lenders will assess these factors to determine if you are credit worthy. Read the full article here: