What is a Credit Score?
Answer:
Credit scores are used by lenders to determine
how much money you can borrow and at what interest rate. Scores can range from 300 to 900. The average is about 680. The two biggest factors that influence your score are how well you have made payments in the past and the total amount you owe.

The best way to increase your score is to make all payments on time and pay down your balances. The less you owe, the higher your score will be. If you credit score is 720 or higher, you can usually qualify for the best rates available.  On the other hand, the best way to decrease your credit score is to default on all your loans and credit card payments.  It's quite simple, the higher your Credit Score the more willing Lenders will be to give you the best possible rates on Loans or Mortgages.

A common myth is that printing your credit score periodically for loan applications will lower your credit score.  This is not true, the credit reporting agencies Experian and Equifax understand that periodic checks will be made for the lenders best interest.
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