How do creditors evaluate your credit score? How does it effects you financially?

Question

I am asking this because I need a answer for these questions. It is very important to me. Any feedbacks, coments or criticism.....

Answer 1

any time you apply for credit the creditor, whether it be car, home, or a computer at best buy, they will run a credit report from one of the three main credit bureaus.  trans union, equifax, experian. depending on the amounts they may do a "soft pull"  of your credit which shows a snap shot of what you have out there already. they also may need to see exactly where you are at as well and do a "full pull" when this happens it will, for a short period, effect your credit score negatively. with on time payments you will see your score come back up again.

fyi. closing out credit, i.e. credit cards, also may have a negative effect as well.