It’s no secret that when you talk about credit, you expect it to be good. It’s the dream of every person who finds themselves in the midst of debt, loans and bad credit scores. But the truth is that these financial mistakes often happen because a large number of people are unaware of the importance of having and maintaining good credit.
Not taking into account that credit history or good credit plays an important role in the life of any person who wants to have an impeccable or at least a good credit report. And, without a good credit score it is impossible to have access to receive a service from any bank or company.
Since for them it is necessary to have a credit that is considerable, either to obtain a credit loan, credit card, car loans, mortgage loans, among others. Generally a person’s good credit is reflected in the credit report and is rated by a credit score between 300 and 850 points. A score of 600 or less is considered poor, while a score of 750 or more is considered excellent.
The credit score is composed as follows.
35% Payment history
30% Amounts owed
15% Length of payment history
10% Credit inquiries
10% Types of credit in use
This division of points is what shows your credit score and how it is rated so that you have an idea and can take into account the different aspects that make up your credit history or credit score.
Once you know about this, you will be able to see how much your credit is affected so you can make the decision to repair it.
Investing in repairing and building your credit is the best decision you can make if you want to get back on your feet and be taken into account by any entity, since it is impossible to move in the world of finance with a damaged or very low credit history.