{"id":4056,"date":"2023-05-04T07:30:34","date_gmt":"2023-05-04T11:30:34","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/what-your-credit-score-really-says-about-you-and-your-money\/"},"modified":"2023-05-04T07:30:35","modified_gmt":"2023-05-04T11:30:35","slug":"what-your-credit-score-really-says-about-you-and-your-money","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=4056","title":{"rendered":"What Your Credit Score Really Says About You And Your Money"},"content":{"rendered":"
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Before you stress about boosting your credit score, learn what this number measures about you and your money.<\/p>\n

There are certainly benefits to having a high credit score: lower interest rates on large purchases, easier approval for buying or renting a home; and higher limits on credit cards. But most people don\u2019t keep track of their credit score until they want to make a major purchase, and even fewer know how credit scores are calculated.<\/p>\n

Credit Scores Measure If You Are Good At Borrowing Money, Not Managing it<\/h2>\n

In 1989, the Fair Isaac Corporation debuted FICO Scores to provide an industry-standard for assessing whether or not a consumer would be a good candidate for a loan.<\/p>\n

A FICO Score is the three-digit number based on the information in your credit reports that helps creditors determine how likely you are to pay back their money. This, in turn, determines how much you can borrow, how many months you have to repay, and how much they will charge you in the form of an interest rate.<\/p>\n

When you borrow money, creditors want a fast way to decide whether or not to loan you money. In most cases, they’ll look at your FICO Scores, and won\u2019t pay as much attention to the report details.<\/p>\n

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A lot of financial education rhetoric says credit scores are an indicator of financial health, and that isn\u2019t always the case because this number does not take into account other important factors.<\/p>\n

A common myth is that your income is a consideration in determining your credit score. Other items not included in your credit score are your:<\/p>\n