Credit Score and Credit History Basics

When it comes to staying on top of your finances there are few things that can have such a lasting impact as your credit history. Many people have heard the terms “credit report” and “credit score” before, but not everyone knows exactly what each means, and few are privy to the important details that make up each. The fact is, having good credit is critical for anyone that would at some point like to get a loan, credit card, buy a house or car, rent an apartment, or even get a job. By keeping on top of your credit history you can rest easy knowing that others view you in a positive light financially.

One of the most confusing aspects for many people is the credit score. While you probably know that it’s important to have a high score you may not know exactly what makes up your score. Put simply, your credit score is a numeric representation of your credit history. While credit history and score are not the same, they are invariably tied to one another. In other words, it is unlikely that someone with bad credit history will have a good credit score or that someone with a great credit history will have a low score.

Source : http://genxfinance.com