Your credit score affects many aspects of your life, determining whether you can get a loan or even work in some industries. However, for many people, credit scores are a mystery. You might be wondering how these numbers are calculated, where the information comes from, and how to bring your numbers back up if you’ve had some financial trouble in the past. Below is a quick guide that explores these questions.

What Is a Credit Score?

Credit scores are calculated by the three major reporting bureaus: Experian®, Equifax®, and TransUnion®. While each company uses its own formula, they all rely on a variety of information, including previous loans you’ve taken out, how many credit cards you have open, and your payment history.

How Are Credit Scores Used?

Before issuing a loan, most lenders want to determine how likely they are to be repaid and will look at someone’s credit score for that answer. Landlords increasingly check potential renters’ score before approving an application for a residence and even employers in some industries consider credit scores when making hiring decisions.

What Is Considered a “Good” Score?

Credit scores are calculated on a scale between 300 and 850, with anything over 700 usually considered “good.” However, even if your score is below 600, you may still be able to get a loan from specialized lenders. If so, making on-time payments can help rebuild your credit, so it is easier to get approval in the future. Asking your landlord to submit your rent payments to the credit reporting agencies will also help raise your rating.
 

Even if your credit is less than perfect, the committed officers at Master Finance in San Marcos, TX, will help you get a loan quickly and easily. They pride themselves on offering fully amortized loans with no “interest only” payments, giving you access to the cash you need for emergency car repairs, family vacations, or doctors’ visits. To get a loan now, visit their website to fill out an application or call (512) 392-6102 with questions today.