What Your Credit Score Means To You
By Ken Austin, Thu Dec 8th

Your credit score is a number contained within your creditreport. The final judgment on your credit score depends on

you amount of debt and your history in repaying loans. Theamount of credit you have available to you will also be

taken into consideration when your credit score is determined.

Credit scores typically range between 300 and 850, withsomething over 600 being average. If you have ever been

referred to a collection agency or defaulted on a loan, yourcredit score will be adversely affected. A bankruptcy will

also lower your credit score dramatically.

The total amount of money you owe as compared to the amount ofmoney you earn will have a huge impact on your

credit score. Each loan you have, including your mortgage, autoloan, credit cards, and even student loans will be

taken into account. If you pay late on a regular basis, yourcredit score will drop.

If you make all or most of your payments in a timely manner,your

credit score will rise. Lenders look at your credit

score as a way to determine your credit worthiness. If yourscore is low, you will likely have trouble in obtaining new

credit.

Lenders look at your income, your debt level, the amount ofcredit you have available to you, and the manner in which

you make your monthly payments. By paying on time, you will keepyou credit score at an average or above average

level. If you have had credit problems, you may want to make aneffort to repair your credit and raise your credit score.

Your future and your financial stability depend to a largeextent on your credit report and your credit score. Obtain a

copy of your credit report each year to make sure theinformation is accurate and that your accounts are listedproperly.

Your credit score is an important part of your life and youshould make an effort to maintain it.

About the author:Ken Austin is the webmaster at The Credit ResourceGuide and Financial Matters