Your Credit Score
Friday, November 26th, 2010 | Comments Off on Your Credit Score
In terms of personal finance, a bad credit score can cost you thousands or hundreds of thousands of dollars in your lifetime. Sometimes just one missed payment will knock 100 points off your score, which is used to determine the interest rate you get on loans.
A high credit score means the best interest rates on mortgages, credit cards and personal loans. A bad score means the opposite. Your credit score can therefore have a very real impact on your life.
FICO, which developed credit scores, says that your score is determined from 22 pieces of information in 5 broad categoires: Payment history, amounts owed, credit age, account mix and new credit. The site myFICO.com has a detailed list of what goes into your credit score.
