Essay about What Does Credit Score Means?

Essay about What Does Credit Score Means?

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What does Credit Score means? Credit score is the way different credit entities rate how responsible is the person at the moment of spending or paying bills. In the United States, the credit is simply one of the most powerful keys to get things we all want or need for our lives. To make a point, I am going to ask you to picture the house of your dreams. Then think how are you going to pay for it? The answer is, unless you are lucky enough to hit the lottery, the only other way is financing it, but not everyone has an A1 credit. Therefore, to achieve that goal we are going to need to build a lot of credit credibility also known as credit score. The most important facts explained in the presentation where: How does it work? How to build it? And last but not least what hurts our personal score? These important facts are the most fundamental things when we start to talk about credit.
First of all, How dos the credit score works? The credit score is the credit reliability each one has proven over the past years. The credit rate in the United States stands from 300 as very poor to 850 as great. The higher you credit score the more credibility the person has earned over the pass of time, therefore, lenders charge less interest rates. On the other hand, the closer the score is to 300 it is easier for the banks to decline for any kind of loans and credit cards. Or in case the person is approve their interest rate are going to be higher, for the simple reason that the lender has a higher risk of not getting its inversion back. The way banks and other financial entities rate the different credit scores from 300-579 as very poor, 580-639 as poor, 640-699 as acceptable, 700-749 as good and 750-850 as very good.
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...ent ways credit entities or financial institutions rate how responsible a person can be at the moment of paying bills on time. Having a good credit score is important for a person future because it can help them buy a house, a car or apply for credit cards. In the United States, if a person does not have a good credit score they will not be able to make their dreams real. Unless you win the lottery, which in the case they will not need to worry about their credit. According to the speaker, the better credit score a person have the better opportunity in life they will have because banks or financial institutes will look at each person credit to see if they will approve them for a loan. A good website to use is Credit Karma because it gives the person their credit score information for free. People should know how to manage their credit and to pay their bills on time.

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