Your credit score and why it matters
As the saying goes, no pain, no gain. Investing time now to understand your credit report and credit score will pay big dividends throughout your life. rates and the best terms.
Your score helps businesses predict the odds that you’ll go 90 days past due (or default) in the next two years on money that they lend you. many requests for credit, especially in a relatively short period of time, is a negative): 10 percent of your score.
Types of credit you use: 10 percent of your score.
Lenders for mortgages, auto loans and credit cards use your score to help understand your ability to pay debt, based on your past payment history. Some newer credit models factor in your income and job history.
However, the old saying remains true: The best predictor of future behavior (in this case, paying bills on time) is past behavior.