Credit reporting bureaus take a look at the payment history of consumers to help compute and determine credit scores
CHICAGO (PRWEB) November 21, 2018
A credit score is an important part of any person’s financial journey that is why National Debt Relief aims to help people understand it better. The article titled “The A-J’s Of Credit Scores” released November 19, 2018, gives people a better way to understand their credit score giving them an upper hand in managing their finances better.
The article starts off by explaining that a credit score is simply a quick way for lenders to assess a person’s creditworthiness. Lenders need to know the risk they are taking when they are deciding on loan applications. These scores reflect people’s financial habits and the higher the score, the better financial opportunities consumers get.
In understanding credit score better, the article shares an easy guide to help people remember what it is all about by using letters “A” to “J.” The first letter refers to the amount owed. This is because this amount has a lot to do with how a credit score is computed. Consumers need to be aware of how much they owe to their lenders when talking about their credit score.
The article also explains that the letter “B” stands for brand new accounts. This is because credit score computation factors in brand new credit accounts being opened by consumers. The more accounts people open, the more lenders will make a hard pull on their score, the more it goes down. This is why consumers need to manage the credit accounts they open from time to time.
The article also shares that “H” stands for history which is a big factor in credit score computation. Credit reporting bureaus take a look at the payment history of consumers to help compute and determine credit scores. The more people pay on time, the higher their score will be. To read the full article, click https://www.nationaldebtrelief.com/the-a-js-of-credit-scores/