Credit scores are very important. They influence how much you pay for credit, where you live, what you can buy, and much more. A high credit score can result in lower home and car insurance premiums, better cell phone service packages, access to the rental property of your choice, and so forth. Property owners usually check credit scores before lease signing, and credit card companies and banks check the scores to determine if they should give you credit and the related interest rate. Further, some employers are doing credit checks on prospective employees, especially those dealing with financial matters.
Five factors determine your credit score: the amounts you owe, payment history, length of credit history, new credit, and the types of credit you use. If you want to keep your score high, follow these tips: