
If you ever wondered about your credit score, then you're not the only one. ZILLOW POULATION SCIENCE says that the average American doesn't know much about credit scores. And that gap is spanning all age groups. Boomers and Generation X'ers knew less about credit than the Gen Z's. You will find answers to many of the most commonly asked questions regarding credit scores.
Commonly asked questions about credit scores
When applying for loans, jobs, or apartments, your credit score is a major factor. It's important to know what it is and what it means to you if you plan on reaching your financial goals. Credit scores are affected by several factors, such as credit utilization and payment history. Lenders also use your score to determine how likely you will be to repay future loans.

How to find your score
The credit score is the number that lenders use to determine whether you're a good risk for them to lend money to. It ranges from 300 to 850 and tells lenders whether you'll be able to repay loans. It is important to track your credit history regularly as it can affect your score.
Hard inquiry vs. easy inquiry
There are two types of inquiries on your credit report - a hard inquiry and a soft inquiry. Each type of inquiry has a different impact on your credit score. A hard inquiry is when you apply for any loan such as a student loan or car loan. A hard inquiry can lower your credit score by zero to five points, depending on your personal credit history. This means it's important to stop applying for credit if you don’t need to.
Hard inquiry has an impact on your credit score
You will be subject to a hard inquiry if you apply for a loan. Hard inquiries tell potential lenders that your are looking for credit. It will harm your score as it will appear in your report, irrespective of whether the application is approved. Hard inquiries also show that you have applied for credit within the past two years.
Getting a good credit score
It is essential to pay your bills on-time in order to maintain a good credit rating. If you're late on one or more payments, it will reflect negatively on your credit score. More than 30% of your credit score is based on whether you make your payments. By setting up automatic payments, you can avoid the temptation to forget to pay.

Knowing your score before applying for a loan
Your credit score is important before you apply for a loan. It can have an impact on your application. This also gives you insight into your finances. Lenders will use your credit score as a guideline to determine your repayment history. But your credit score is only one part of the puzzle. Lenders can also consider your income which can impact your score. You can avoid being taken advantage by red flags by regularly reviewing your credit score.