The three major credit reporting agencies work with Fair Isaac to develop this scoring method. The score ranges from 300-850 in which several factors are considered to arrive at a certain score. About 1/3 of this value is based on your payment history. They also will consider your debt.
It is important for the institution to also find out how long you have had credit. If you have a new and kind it will also be considered. You can do pre-employment screening solutions With Actionable Insight from various online sources.
Your credit reports from these institutions can greatly affect your life. You either approved or denied based on your report, and there are times you cannot do anything about this because this information is only open to your creditors.
Fortunately, the US Congress enacts the Fair Credit Reporting Act of 1971 to protect the rights of consumers when it comes to reporting agencies. Fair and Accurate Credit Transactions Act of 2003 gives more protection and consumer rights. Now, every consumer has access to the report and identity theft protection.
It should be the responsibility of everyone to ensure you have a good credit report. At least once a year or as much as possible, you should review your reports for errors by requesting your free copy of the agency reported.
Of course, you should make sure you pay your debts promptly and it does not mean paying the minimum only. Have a good score means you can expect a lower interest rate on your loan application more. Try lowering your total debt, not only to your score but for your financial health and security.