Your credit score is directly depends on your credit history. This could be one of the major reasons why people have different credit scores and get loans on different interest rates. Individual credit score may be bad, good or average based on the credit history of that person. Determination of credit score depends on the mathematical calculation of credit history. Credit history means the previous records of your loan payments, how you have paid, did you have any late payment, how many times you paid late fines etc.
There are so many advantages of a good credit score. Credit score has the ranges between some numbers. If you have more than or equal to 720 is really excellent, below 720 to 650 is good and anything below 600 means you have do some repair work for your credit history. If you have excellent credit score, there is very high chance of getting loan on a low rate of interest, best rate of interest in the market.
The lender has his own responsibility to verify the credit history of a loan applicant and it depends on the credit history of that person. No lender wants to take risky loan. Credit score can be repaired in some cases. If you pay your bills on time regularly and if this continues for long time in many loans, your credit history will improve gradually and that results your credit score improve over the period of time. This will again prompt you good worth in the financial and loan market.
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