Credit scores measure credit risk. Lenders and creditors use the credit score to determine how much of a risk you are as a borrower or a creditor. You’d be surprised at how your actions as a creditor can affect your credit score. For example, did you know that closing out an account that still has a balance lowers your credit score? Indeed, it does. Read on to find out more behaviors that affect your credit score.
Pay your bills on time
The best thing you can do …

In the present economy, it’s crucial that consumers have the ability to buy and sell goods and services. Everything we require for living (with the exception of air, which is still free of charge!) demands a financial transaction – clothing, groceries, transportation and shelter. The three-digit number that makes up what’s known as your credit score has substantial influence on your ability to conduct business and purchase the things needed for every-day life.
Credit scores are designed to be a extraction of your financial history. The algorithm takes into consideration various …

Consumer reporting agencies, better known as credit bureaus, collect financial information from you from institutions with which you have a relationship. This information is compiled into a credit report. If you’ve had a credit card, loan, or a collection account, chances are you have a credit report.
Creditors and lenders to whom you make an application for credit use your credit report to determine how you pay your bills. They then use this information to determine whether or not to extend credit to you. If the information …