We are taught not to spend more money than we actually have. It seems like a perfectly good advice, but getting loans and paying them back on time may be the only ways for the lenders to determine that you’re trustworthy enough.

A credit score can sometimes be pretty confusing. It may seem like a random number the banks assign to you to determine how good you are at paying your bills and it determines your fate in business (or at least in getting the loan).

How to keep the score high?


If you’re starting from scratch meaning you never had any credit with your name, the main goal is to establish that you will pay your bills on time. Start by applying for a secure credit card. It’s used like any other credit card, there’s interest and you need to pay each payment on time, but the deposit for the card comes from your own pocket and you get it back after you close the account.

You could also apply for a “credit-building” loan, which is basically a forced saving account with payments reported to the credit bureaus.

How to repair a low score?


Once your credit score has become too low for banks to accept your for loan applications or to set you a reasonable interest rate, you need to take active measures in repairing the score. This is something that gets more complicated with a longer financial history and at some point you might need to use the help of professionals.

The approach to each bad credit score depends on the circumstances of the person who has it and the experts from “Clean credit” are willing to dig deep and deal with every issue individually, until your finances are up and running again.


What is it used for?


The importance of your credit score depends on what institution is asking for it. Some won’t ask at all, while others would alter their services based on your credit score. There are employers in certain industries that ask for it and use it to determine whether a potential employee is trustworthy. There isn’t a clear correlation between the two, but that’s for the employer to decide.

The banks ask for your credit score most often and they use it to determine your interest rates. The lower the credit score, the higher the interest you would pay.