Are you finding it hard to access loans and credit facilities because of a low credit score? Financial lenders look at your credit score when assessing whether you qualify for a loan, and how much you qualify for. Credit scoring has been around for a long time, especially in the US and Europe with lenders increasingly relying on it as more personal financial data become available. Your credit scores will determine if you qualify for a new credit card, how much mortgage you can access, a car loan, and other important financial facilities that you need. If you are wondering how to improve your credit score it is important to understand how it works.
How does credit scoring works?
The need to assess the creditworthiness of loan applicants led financial institutions to come up with a system to try and assess different applicants. The earliest and commonly applied credit scoring system is the Fair Isaacs Corporation (FICO) scoring.
Credit reporting agencies are also known as credit bureaus do this scoring depending on the personal financial information they pull from sources such as banks, courts, utility companies, and other public information.
Read More: https://www.creditrepairease.com/blog/what-is-a-good-credit-score/
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