Credit Score, What Is It?

Ways To Build Credit: Credit Score LevelsThe Credit Score is a score for each person in the United States with a social security number. It is supposed to reflect its ability to repay its debts. In other words, it establishes your financial profile to determine if you are a serious student (if you pay your bills and repay your debts well and on time) or a deadbeat.

So, the higher your score, the higher you will be appreciated by banks and you can easily get a credit card or a loan.


What is the Credit Score?


It is very important to have a good Credit Score because it allows obtaining a credit card, credit lines, credit, and more generally it facilitates any transaction of daily life.

So you can get an interest rate on a loan much more interesting, save on home insurance premium or open an account with an electricity supplier or mobile telephone line without bail, if you have a good Credit Score.

FYI, some phone companies may ask for a deposit of $ 1,000 for an opening line for a non-resident, tourist, or someone who does not (yet) Credit Score.


Method of calculation


Some indications:

– 35% of Credit Score is based on the consistency of payments.

– 30% of the score is calculated on the percentage of your credit capacity used. In other words, you will be rated higher if you use a small portion of your credit lines instead of taking advantage of the maximum authorized your GAP, TARGET and MACY’S card.

– 15% of the note is determined by the length of credit history.

– 10% of Your Credit Score is based on the type of credit you have, use or property (car, student loan, mortgage loan or revolving (credit cards or lines of credit) or other.

– 10% of Your Credit Score is based on the research you made to obtain credit. You should know that every time you ask to receive a credit, it affects your Credit Score negatively.



– 330-619: You are a bad student. Besides the banking jargon, they call you a “Credit Leper”.

– 620-659: A very average student, so some credits under certain conditions may be possible.

– 660-720: Serious Student and in progress, with a credit score considered good. For you must know that 720 is the average American credit. This means the score that is often asked for credit or financing to normal conditions.

– 721-750: Very good status. You meet all the conditions to obtain financing or credit terms quite satisfactory.

– 751 +: You are in the first class with an excellent Credit Score. You can avail loans at very favorable terms.