A lowcredit score can hurt your ability to take out a loan, secure a good interest rate, or increase the spending limit on your credit card.
Some reasons for a low score are out of your control — such as unexpected medical debt or a lack of credit history.
Credit rating agencies are now working to improve access to credit by giving people more time to pay medical bills before the debt appears in reports, and by removing other debt completely. They’re also making it easier to count rent, utility payments, and other recurring bills — a boon for those who need credit the most.
Here’s what to know:
WHAT IS A CREDIT SCORE AND WHY IS IT IMPORTANT?
Put simply, a
