Your credit score is a number that helps lenders decide whether or not to loan your money or approve your credit card application. In other words, it is a pretty important number.
Your credit score is a number that helps lenders and credit card issuers determine how much interest to charge you. In other words, it is a pretty important number.
Your credit score is a number that helps landlords determine whether or not to lease property to you and how large your deposit should be. In other words, it is a pretty important number.
Your credit score is a number that helps utility companies determine how large your deposit should be. In other words, it is a pretty important number.
Do You Know What Your Credit Score Is? |
You and I live in a credit card society of low introductory rates, low ongoing rates, low balance transfer rates and, even, low rate balance transfers for the life of the credit card.
We also live in a society of Mortgage Rate competition, Home Equity Loans, Debt Consolidation Loans, Unsecured Loans, Secured Credit Cards and, even, credit cards for persons with no credit history or a limited credit history or a bad credit history.
There is a very good chance that you will need some sort of backup (or upfront) financing for your home-based business. Actually, having a credit card used only for your home business is all but mandatory. No, let me change that statement: it is mandatory!
It doesn't matter if you file a Schedule C on your personal tax return or a Business Tax Return, you need to have the income and expenses for your home business separate and easy to find.
Knowing your credit score will help you decide which types of loans or credit cards you can apply for and what sort of interest rate you can expect.
How is Your Credit Score Determined? |
The two most important factors in determining your credit score are timeliness of payments and how much credit you have.
Your Payment History (timeliness of payments) accounts for 35% of the score. How much you owe accounts for another 30%. The length of your credit history makes up 15% of your score and new credit issued accounts for 10%. The remaining 10% considers several smaller factors such as your credit mix: credit cards, mortgage, revolving loans, etc.
What is a Good Credit Score? |
Credit scores range from 350 to 800 with most people falling in the 600s and 700s. The higher the score, the better.
Your free credit report does not contain your credit score, and it is your credit score that is of utmost importance if you need to obtain any sort of financing for your home business.
For more information about your credit score, credit reports and monitoring your credit activity, please visit http://www.creditcardsforamerica.com/creditcardarticles/freecreditscore.html.