Have you ever been curious about what the credit score of yours means?
Your credit score (or maybe FICO score) is a numerical summary taken from the info in the credit report of yours, which in turn is calculated using a formula taken from all 3 credit reporting bureaus.

The formula takes into consideration various factors, which include:

o your repayment history or credit general performance
o your existing debt levels
o the types of credit you employ
o your length of credit history o any new credit you are working to make use of for or perhaps have used for in the past 12 months.
What does The Credit Score Mean of yours?
The highest possible credit report a person is able to get is 850 with the lowest score being 300 - although the median in America is around 720.
When assessing your suitability for a mortgage, lenders will look at the credit score of yours. This gives them an idea about the past history of yours with repaying money and also helps them to assess your' risk factor'.
The way banks see it, the lower your credit score the higher your risk aspect in their eyes. A low credit score tells them you have a history of bad repayments along with other creditors. Of course in case you're considered a very high risk borrower then banks usually opt for a "rate-for-risk" approach in relation to figuring out what interest rates you'll be charged. If the bank of yours sees you as starting a credit repair service high risk borrower, then you'll most likely receive better interest costs as a result.