Have you ever asked yourself why the credit score is required for an apple card? In general terms we are aware that the credit score is a numerical value that reflects the creditworthiness of an individual. The credit score is also known by many other names like FICO score, Fair Isaac score, etc. The credit score is usually calculated based on the information contained in the consumer's credit report and it is expressed numerically. There are three factors which are taken into consideration when computing the credit score.
The first factor that is taken into account when calculating a credit score is the amount of debt that is incurred. This debt can either be secured or unsecured. The higher the level of debt that is incurred, the lower the credit score of the consumer. A high level of debt indicates that the consumer may have defaulted on some debts or may have neglected to pay bills. The second factor is the length of time for which the debts were outstanding.
The next factor that is taken into consideration is the period of time during which the debts were outstanding. For a lender, this factor significantly affects the decision whether or not to offer credit. If a person has a long record of defaults, his chances of approval are low. Therefore, it is always advisable to keep a good track of your credit score to see if you are offered credit at a reasonable rate.
The last factor that is considered before computing the credit score is the types of credit that you have. Credit score is primarily affected by the type of credit that you have like a department store card or an American Express credit card. Most lenders check your credit report before offering you credit. To keep a track of the credit that you have been offered, it is recommended that you get a copy of your credit report from the credit reporting agency at least once in every six months.
Another thing that you can do to ensure that your credit score is high is to pay your bills on time. You may also want to check your credit report for errors. Do not be surprised if there are mistakes because many people make them. Pay attention to these mistakes and report them to the credit reporting agencies.
There are other ways to boost your credit score too. It would be good if you could pay off your debts in full. If you cannot do so, you may want to consider paying them partially and then paying them off completely. When you do this, your credit score will be calculated as if you had paid off the entire amount of your debt.