Understanding Credit Score Ratings
The credit score rating scale is a confusing numeric system to understand. There are lots of numbers and every one of them means a different thing. The sooner you understand this scale, the easier it will be for you to do the necessary repairs to improve your score faster.
How Credit Scores are Composed
There are a few things that are reviewed by companies in order for them to compose your credit score. They look at your past payment history. How well you pay your bills and when you pay them. They pay close attention to your outstanding debt. If you have too much debt, your score will be lower. It is also composed of how long you have had your credit history. If you are just starting out, your credit score may be lower even though you do not have any bad points on your report.
Other Factors That Affect Your Score
Credit companies also want to see how much credit you are applying for. If you have filled out a number of credit card applications this will reflect poorly on your credit report. Also having a lot of outstanding debt with large balances and/or high rates of interests will bring your credit scores down.
Do You Have an Excellent Credit Score?
Any score that is 700 or above is considered a great score. If you have a score with 700 or above, you will have no problem getting credit at a great interest rate. A score of 650 and below defiantly has room for improvement. A score between 650 and 450 needs to be worked on. You will probably have a harder time getting a loan or any type credit without securing it. This means that any loan that you apply for will need to have some kind of collateral in place to secure it. If you have a score of 450 or below, then you desperately need to get some help with your credit. It is likely that you will not get any type of credit or loan unless you receive some form of counseling to improve your score.
Get the Help You Need
Credit counseling is readily available free of charge to any who desire to better their credit scores. They educate you on what you need to do to have a better credit rating and make wise decisions so as to keep your credit rating high. This will be a big help to you in putting yourself in a better financial situation and maintaining it.
How Credit Scores are Composed
There are a few things that are reviewed by companies in order for them to compose your credit score. They look at your past payment history. How well you pay your bills and when you pay them. They pay close attention to your outstanding debt. If you have too much debt, your score will be lower. It is also composed of how long you have had your credit history. If you are just starting out, your credit score may be lower even though you do not have any bad points on your report.
Other Factors That Affect Your Score
Credit companies also want to see how much credit you are applying for. If you have filled out a number of credit card applications this will reflect poorly on your credit report. Also having a lot of outstanding debt with large balances and/or high rates of interests will bring your credit scores down.
Do You Have an Excellent Credit Score?
Any score that is 700 or above is considered a great score. If you have a score with 700 or above, you will have no problem getting credit at a great interest rate. A score of 650 and below defiantly has room for improvement. A score between 650 and 450 needs to be worked on. You will probably have a harder time getting a loan or any type credit without securing it. This means that any loan that you apply for will need to have some kind of collateral in place to secure it. If you have a score of 450 or below, then you desperately need to get some help with your credit. It is likely that you will not get any type of credit or loan unless you receive some form of counseling to improve your score.
Get the Help You Need
Credit counseling is readily available free of charge to any who desire to better their credit scores. They educate you on what you need to do to have a better credit rating and make wise decisions so as to keep your credit rating high. This will be a big help to you in putting yourself in a better financial situation and maintaining it.
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posted by Debt Consolidation Loan at
10:38 AM
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