Understanding How Your Credit Score is Calculated: The Complete Guide to Improving Your Financial Health
Introduction Imagine getting excited to buy that dream car or apply for that mortgage, only to get declined or to be offered some absurd interest rate. And all because of your credit score. The three-digit number that gets you financial life at one place and breaks it at another, basically goes unappreciated. Instead, learning exactly how your credit score is calculated empowers you to take control over your finances and grab better opportunities. In this post, we'll decode credit scores and show you how the scores are calculated, after which we'll give you practical actionable tips on how to improve your credit score. Imagine a life where your credit score opens doors instead of closing them. Why Your Credit Score is a Big Deal Your credit score is more than just some arbitrary number; it is a reflection of your financial health. Lenders use your credit score to decide the likelihood of paying off debt, a factor that can affect anything from approval for a credit card to l...