Every year, a credit repot comes out with a corresponding score at the bottom. This could be from to and it varies from person to person depending on their consumer behavior.
Your credit score is based on different things. This includes your credit history, outstanding debts, credit length, number of inquiries made and the types of credit that you have.
The one that carries the biggest weight is the credit history since this takes into account what has happened over the past to years. During this time, you may have incurred late payments or filed for bankruptcy. If there are none, then you get a perfect score.
The second biggest chunk comes from any outstanding debts that you may have. This could be a loan that you applied for to pay for a house or a car. If this was paid for already, then that is good. A more recent loan could affect your credit score.
Half the percentage value of the second is the length of your credit. If you have had this for years or more, then you are a better off than someone who is just building it.
The next ten percent comes from the number of times you have made inquiries about applying for a loan. If you have done this regularly, it tells creditors that you were turned down a lot in the past.
Last but not the least is the types of credit you have. If you have large credit, then good for you.
If you were to ask what is considered to be a good credit score that reflects on your report, experts would say that this must be or higher. Those who are able to reach this figure will be able to get a loan and pay this back at a lower interest rate. People who are below this score will have to pay at a higher interest rate.
The good news about a credit report and score is that this changes. If you didnt score well this year, you have a chance to improve on it next year. But you must first find out what is your credit score and see what brought it down.
If there were unpaid debts, these should be settled. Should there be any mistakes, do not just accept it but report it so this can be investigated and corrected. Being able to control your spending is the only way any one can have and maintain a good credit score.
For those who are having a hard time, there are people who can help. So dont be afraid to get the assistance of financial advisers.
The credit score is your final grade in a report. Although there is no passing or failing mark, there is a standard that creditors use to determine if your loan should be approved or not and at what interest rate will be followed.
The credit report offered by crediting agencies use varies. You will notice when you get a copy from the three namely Expedia, Equifax and Transunion but they all say the same thing and that is whether or not you are in good standing. You can get all these at the same time or after every few months. The best part is that you can get a copy for free.
- Credit Score Explanation
- Numbers have different meanings. In school, you are given an A if you excel in a particular subject. In the real world, a or could have an effect on your ability to get a loan. This is called your credit score and to give you an idea, here is an explanation. The credit
- What Is a Credit Report Score
- A credit repot score is the basis used by lenders to determine if your loan application will be approved or not. If your credit report score is above , there wont be any problems and your loan will be granted with low interest rates. If however you score below this figure, you will be charged
- Understanding Your Credit Report Score
- Understanding your credit score is important since it may help you determine your chances of being approved on your credit applications. Your credit reports score usually will help lenders and credit institutions to determine if you are good enough for credit that you have applied for. Lenders would need to be ensured that people they
- What Is a Good Credit Score
- Your credit score has a profound effect in terms of the interest rate you will be paying when you apply for a loan. This is the basis that lenders use to determine if you will be able to pay for the amount in the future and if you need money to pay for college or
- Working With Your Credit Score
- When you see advertisement after advertisement on television of businesses who want you to find out your free credit score, that is a red flag that someone is looking to make some money off of you. The funny thing is they are not lying to you but at the same time, you are exactly
