A credit score is a number of three (3) digits, which can predict whether or not you will be able to pay your bills and repay your loans. The credit score of a person is calculated on the basis of the credit report and the credit information it shows. A lender decides on lending or not lending you the money, by analyzing your credit score. Your credit report says the same but it gives detailed information about your credit history. But viewing the credit score makes it easier to get to a decision of lending or not lending money to you. To correctly assess your credit score, you will require a range to measure where your score stands.

Among the credit score range, the most popularly used version is the FICO score range and Vantage score range. The score range of FICO is 300 to 850. The Vantage score range measures from 501 to 990, which a bit higher than the FICO range. The credit score rating of your credit report enables you to know, the status of your credit report in the market.

As some of your bill repayment information is more significant than other bills, each of your credit information has a different score. Your credit score is calculated on this information; among them some may score more for you while others will score less. They collectively make up your credit score and detailed report is called credit report. The credit report helps you to plan for a loan or mortgage. If you have a low score that means you have a bad credit score. The first thing you should do after getting your verified credit report and score is to improve your credit score. It will help you get lower interest rates for home refinance loans and car loan refinancing. So, here a few things that you can do to fix credit score:

• Once you find out your credit score, you should think about improving it. You can start with paying your credit on time. Delayed payment of the bills and credit, reduces your credit score.
• You should also reduce the number of credit accounts you have. Especially the inactive accounts because even though they are inactive, their presence in your credit report decreases the score.
• Having too many credit accounts, increases your chances of over running the credit limit in each account. So make sure your credit accounts are less in number.
• If you have a previous loan, your repayment should be on time so that the credit score rating does not go low. You must not have any outstanding loan payments on your credit report.
• If you have had a bankruptcy, your credit score goes low. But there is a chance to repair credit score if that dates back to 3 years or more. In case, you do not have any history of bankruptcy then its better not to file for one, unless it is really needed. As the bankruptcy will be shown on your credit report for 10 (ten) years from the time you have filed for it. it will have a direct effect on your score, till it remains on your credit report.
• The banks or the lenders will weigh the risk factor in lending you money by looking at your credit score. So, before going to apply for a loan, you want to repair the credit score. As a low score can get your loan application rejected.
• Be sure to check your credit report each month, to keep a track of your improvement.
• Avoid opening new credit accounts and try to keep the old credit accounts maintained. If you open new credit accounts, the lenders will perceive that you are in the middle of a financial crisis and may not approve your loan.
• To fix credit score, you will have make sure that you do not have more than 50% of credit as per your credit limit, on the card. Taking more credit will mean financial trouble, which will keep the lenders doubting about your repayment ability.
• You will have high interest rates on any loan you take, if your credit score is low. With a bad credit score you will have to pay higher interest rates, it is better to have a high credit score if you want to save yourself from high interest rates.

When you have any financial crisis, only a good credit score can be your savior. If your credit score rating is bad, you should at improve credit score faster, this will help to keep your goodwill and positive image in the market. A good score is always at your advantage, especially when you need a loan or mortgage, they assist in keeping your interest rates low and also your loan gets approved with any trouble. It's wise to keep your credit score rating high.