Credit: “Your credit” refers to a rating that is used by companies like mortgage lenders and car dealerships that extend credit to consumers to determine how reliable that person will likely be about making monthly payments. Each consumer has his own rating, or score assigned to him. The rating allows them to see how reliable that particular person is for paying back debt.

There are three main companies that track your credit and each has its own methodology: Experion, Equifax and Transunion. Essentially, these companies do “research” about transactions that happen in your name. They then rate the favorability of each transaction and make adjustments to your aggregate score, kind of like a batting average. Experion’s credit score is called FICO (stands for Fair Isaac and Company). Equifax’s credit score is called a Beacon score. Transunion’s credit score is called Empirica.

Virtually every major transaction affects your credit. Several things can adversely affect your credit: being late on your credit card, rent or mobile phone payments, only paying minimum balances, not having a stable address or employment history, any kind of public records like leins or judgments or bankruptcies, having too much credit or having your credit checked too many times.
Ways of improving your credit is just to pay consistently and on time.


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