What is a credit score and why does it matter?

Oct 10, 2017

Welcome to our freshest series Fincheck reader! In this series, we're tackling the credit health topic, helping you understand all things credit! You can look forward to learning more about credit scores, reports, improving your credit health and the factors that influence your credit health.

At the end of this post, we'll share a tool with you to help you get very own FREE credit score. Let's get started.

First of all, what is a credit score?

Your credit score is a number from 0 to 999 and is calculated by using all the details in your credit profile. Every time you submit an application to get your credit score or credit report, your latest score will be calculated. You can usually find your credit score on your credit report.

The higher your score, the better your credit health is. It's like making points in a game! Having a higher score will make it easier for you to borrow money, or buy goods on credit. Having a higher score also means you're more likely to be able to obtain better deals with lower rates of interest.

Simply put, a credit score reflects a score summary of all your financial decisions. It is often used by lenders, such as home loan and personal loan companies, to make accurate decisions on whether they should lend to you or not.

It's important to note that each lender has a different way of calculating your score and they may take into account different forms of information. This can include information their organisation already holds on you, or your employment circumstances. Your score can thus change slightly depending on the creditor you want to borrow money from.

Why does your credit score matter?

As we mentioned, almost all lenders and financial institutions will take your credit score into account before offering you a loan or other financial products.

Most of all though, your score matters because it reflects how healthy your financial decisions are. Checking your credit score means you are able to see how healthy your credit score is and to follow up on your accounts if you think it does not accurately represent your financial health.

Where can you get your credit score?

Fincheck always aims to help people make better financial decisions. We have spent a lot of time and effort in building a tool to help you do all of the above. You can sign up for the MyFincheck Credit Score Tool and get your FREE score directly here. Or, if you want to learn more about the tool, you can read about the features here.

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To your better financial future!

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