Credit Scores

A credit score is a complex mathematical model that evaluates many types of information in a credit file.

What is a credit score used for?

A credit score is used by a lender to help determine whether a person qualifies for a particular credit card, loan, or service. Most credit scores estimate the risk a company incurs by lending a person money or providing them with a service –– specifically, the likelihood that the person will make payments on time in the next two to three years. Generally, the higher the score, the less risk the person represents.

How does my credit score affect me?

Your credit score is an important indicator of your financial health. Lenders use your credit score to determine: Whether or not you are a good candidate for a loan, what type of loan you qualify for and what interest rate interest rate you will receive. While your credit score is a key determinant of your creditworthiness, lenders also examine the information on your credit report and your loan application. Regularly checking your credit report enables you to: Be informed of the most up-to-date information in your credit history and to correct any inaccuracies, to make sure that your credit data is a true depiction of your credit record and increasing your chances of receiving credit under the best possible terms

What factors influence my credit score?

Various factors determine your credit score, including the following:

How do I improve my credit score?

These common guidelines and practices will generally help raise your credit score:

What can I do to start improving my credit scores?

Start by contacting Commonwealth Mortgage Group. We will consult with you on how to properly and strategically raise your scores as quickly as possible. If your credit score is a little low, you should pay your bills on time, reduce your debt, remove inaccuracies and avoid new inquiries to give it a boost. Many people who take good credit for granted underestimate the amount of savings that can be realized from a good credit rating. The cost of checking your credit is minimal compared to the amount you may save from what you learn.

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