Credit score?! Where did this come from and how do I fix it?

A credit score is a number based on a person's credit files. Lending institutions like banks and auto dealerships assess this number to determine how worthy a person is of receiving their goods and services based on a seven-year history of how good a person has been at paying off money they had borrowed.

Given the need a person has for credit, whether it is easy access to cash or convenience, not only is it important to know what your credit score is, but also how to improve it. If you have a poor credit score and you don't improve your credit score you could end up costing you thousands of dollars.

Everyone is entitled to a free credit report each year. These let you check all the items that are on your credit report. If you see any items that look out of the ordinary, you can contact the appropriate parties to get more information about the item, and if it is incorrect you can get it removed from your credit report.

In matters that don't involve fraud, a credit score can be fixed with time and money. After seven years, bad accounts leave one's file. For the rest, it is important to create space between the balance and the limit.

Items that contain balances near their credit limits throw up red flags for lenders because they show that a person is a higher risk than someone who does not utilize all of their given credit.

What it comes down to is that when someone needs credit, it can be very hard to find. Low scores are the barrier between people and access to credit, and these scores can be improved upon with time and money.