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A high credit score leads to a good credit worthiness which further goes down in the record books as good credit report. A good answer will fetch the student good marks. Similarly a good credit history shall give the user a good credit score. A credit score ranges from 350 to 950. A credit score is dynamic and changes with every credit activity carried out by the person using the credit card. Different agencies employ different methods of pinning the credit history down to a number called credit score. However any agency shall give a good credit report more or less the same credit score. A credit score below 620 something that will not please the money lenders. A credit score between 650 to about 720 is regarded as an average credit score. A boffo credit score of above 750 shall give you a good financial trust, which is what most organizations look for, when issuing loans or lending money. A credit score is a summation of many credit activities done by the person in the past. Late payments or missing payments aid to a substandard credit report which deteriorates the credit score. If the available credit is high then the credit score is bound to be good. Credit history plays an important part in deciding the credit score. The longer the credit history, the better it is. The trust factor comes into play here. If one has been successfully using the credit card for a longer period of time then it gives the impression that the person is more ‘credit trustworthy’ and is eligible for mortgages and loans. Number of inquiries into one’s credit may also lower the credit score. Applying for more than one credit card in a short period of time, say, 1 month will do no good to the credit score as one may be found guilty of trying to get a lot of credit in a short span. Other factors like bankruptcy, tax liens, income reports and financial judgments may also affect the credit score in a negative way. However all types of credit loans are not treated equally. A card issued by a departmental store does not have the same gravity as the one issued by a major company or a bank. So this too affects the credit score. Having a great credit history for a departmental store and poor credit dealings under a bank’s credit card shall not add more points to the credit score.
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