How is a Credit Score Calculated?

September 8th, 2014 443 Auto Sales

If you’re thinking of making a big purchase, such as a home or vehicle, it’s a good thing to know your credit score.


In theory, a credit score tells banks and lenders how you deal with money. Are you creditworthy? Do you pay your bills in full, on time? A high credit score means you can be trusted to pay your bills properly, while a low credit score warns people that they may not get their money as expected.
Credit scores are compiled using credit reports via Experian, TransUnion and/or Equifax, which are credit bureaus set-up to monitor people’s creditworthiness. Did you know you can get a free credit report once every year from each of the major credit bureaus? Go to If you choose to discover your credit score, there’s typically a small fee (less than $10) online to obtain it.


Credit scores can be “improved” in several ways. The more money you borrow, the more your credit score decreases, so avoid borrowing large sums of money. It’s advised that you pay off debt rather than moving it around. Indeed, it’s best to keep balances low on credit cards and only open new credit accounts as needed. Finally, pay your bills on time. People with high credit scores are people who aren’t heavily in debt– they live “within their means” spending money they have rather than money they don’t have.


When you want to buy a car, it’s best to buy what you can actually afford rather than what you “think” you can afford. 443 Auto Sales in Lehighton, PA, offers reliable pre-owned cars for sale at reasonable prices. With over 170 used cars for sale, 443 Auto Sales is very likely to have the kind of vehicle that suits your needs and your budget.



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