Anyone who’s ever taken out a loan or owned a credit card has a credit “score.” Just like a grade that evaluates your performance in school or on the job, creditors evaluate your performance concerning how quickly you pay back your debts, whether you carry a large balance if you have ever defaulted on a loan, and other facts relevant to your credit history.
Among the many occasions, your credit report may be reviewed when you apply for a mortgage, want to rent a property, apply for a job or get insurance. Your credit score also may affect the rate of interest you’re charged. A lower score may mean a higher interest rate.
Want to improve your credit score? Here are a few things you can do.