How to check your credit score

Your credit score is a snapshot of your credit report at a particular point in time. It is a number – usually between 300 and 850 – that says how likely you are to make your credit payments on time. Depending on how good your credit score is financial institutions like banks and different credit card companies decide whether you are eligible for a loan and a credit card (with a good credit limit) or not.

How does information about me get into a credit report?
When you enter into most credit relationships, you give the creditor the right to provide information about you and your bill paying history to any credit bureau by you’re signing the credit application. The information also comes from public record sources such as tax and court records, your employer (if a credit report is used for employment purposes), utility companies and debt collectors.

There are five ingredients of a Credit Score
1. Your payment history – about 35% of your score. Paying your bills on time can help build your score. Late payments, bankruptcies and other negative information pull your score down.