Today no one wants to keep cash in his pocket and for this the alternative provided by the banks are credit cards. Credit cards are the way of making transactions directly from your account where you lend money from the issuer and pay him afterwards. Credit score is one feature of credit cards.

A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person, which is the apparent probability that the person will pay debts in a suitable manner. A good credit score is above all based on credit report information, typically sourced form credit reference agencies.

Generally individuals with FICO scores above 700 are considered as a Good Credit Score. Of course there is no regularity in black and white telling what the good score is; it is believed that the normal average borrower is having credit score in the range of 600-700. The factors that affect the Good credit score are:

Payment History: One of the most important factors telling your payment history placing the emphasis on your recent activities. This results for 35% of your total credit score.

Amount you owe and existing Credit: This is the second most important factor about your outstanding debt accounting 30 % of your total credit score. Duration of Credit History: helps in providing 15 % credit score. New Credit accounts for 10 % of the total credit score. Types of Credits in Use – This account for 10 % of the total credit score.

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