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1. To people who are not familiar with the term credit
score, they often assume that this is the score that we get
in our credit cards for the number of purchases that we
make every year. But nothing is more mistaken. Credit
scores are actually the grade that you receive depending
on how reliable a person is in paying debts they have
accrued and credits.

2. Credit scores are determined by a lot of factors, how much
your outstanding debts is, how regular do you pay for
it, how much you spend and the way much you earn. It
will also count on your past credits and just how were you
as a borrower. These are all being gathered and recorded
by credit agencies and credit reference agencies like
Equifax, TRansUnion and Experian.

3. If you think, you are the only one who knows that you
owe a credit card company a large amount, think again
because they do keep records and what's more, all the
credit transactions that people get are being filed for
future reference of every credit and financial institution in
the united kingdom.

4. Credit scores is important because it can often mean being
accepted or rejected to borrow money. With a really bad
credit score, you may not be able to get a house loan, car
finance, a school loan and even a bank card. In short, with
a bad credit history, your era of borrowing money is
history. As an added salt to the injury, it is not only credit
card companies, lending companies and banks that do get
information from the credit scores.

5. Even private companies and government agencies use this
to background check a current employee or a potential
employee. You see, a credit score will determine
someone's financial savvy and a sense responsibility. This
will also show just how much a person is willing to face up
to a problem instead of running away from it.

6. This runs specifically true with employees that are being
hired or were hired to assume posts that deal with really
sensitive financial issues or people who find themselves
directly in contact with money. A credit ranking and a
credit score is important in determining should they will
be able to handle the finances well.

7. Cellphone companies and credit card companies also use
credit scores to determine the clients that they can should
target. People who have good credit scores are often
those who have the spending power. Thus, they're good
people to offer cellular phone packages and credit card
services.

8. In securing financing, credit scores are also used in
determining the sort of loan that will fit your credit
profile. Those who have high credit score are given higher
amounts in loan, lower interest and longer time frame in
which to pay the loan.

9. In contrast, people who do not have a good credit score
could be refused a loan or at the very least be given a
small amount in loan, better interest and shorter time
period to pay the loan. This is because credit card
companies and lender also want to protect their interest.
Low people's credit reports are more riskier and therefore
warrant higher interest levels.

10. Credit scores can be purchased through the internet via
Equifax. They'll send you your FICO (Fair Isaac Corporation)
score for a fee, $12.95.

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