Now no matter what you've heard, you do not have a credit score. You have many scores and they change all the time. This can be good news or bad news. If your score is low, it can go up. If it is high it can go down. In order to change your score, you will need to understand the credit scoring system.

Lenders such as banks and credit card companies use credit scores to assess the possible risks posed by lending money to consumers and to diminish their losses due to bad credit. Lenders use credit scores to determine who qualifies for a loan, at what interest rate and at what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. credit scoring is not limited to banks, other organizations such as mobile phone companies, insurance companies, employers, landlords and government departments, employees same techniques. Be aware that under the equal credit Opportunity Act, credit scoring may not factor in gender, marital status, national origin, race or religion. But it does and it can factor in other areas, such as zip code.

For example,