Do You Have a Good or Bad Credit Score?
Your credit score can be calculated in a variety of ways. For instance, your credit history, repayment history, present debt to income ratio, number of credit applications, volume of bad debt, auto loans, unsecured credit card debt, mortgage loans etc. if you have a good credit, you will surely qualify for good rates in loans.
Keep in mind that your credit score may not be the same thing with the great credit reporting bureaus such as Equifax, Experian, CreditScoreWiz and TransUnion. Whenever you wish to apply for a loan so as to negotiate the most effective rate for you, make sure you know the scores of the three credit bureaus.
You can as well ask your lender the credit reporting bureau being used by your lending institution. There is a lot of specialized credit reporting departments out there.You must be aware that the credit score keep changing as you continue to add information to your credit history file. A missed or recent payment in your file will surely affect your rating in a great way.
Lenders will not only look at your credit score, but they will also assess your overall credit history before giving you loans. This will help them to determine your credit worthiness. Other things they will consider include:
- Your yearly income
- Your employment details
- Your assets
- Your age
Credit scores are not only used by future creditors. Most times, other entities like potential employers and insurance companies will take a look at your credit score rating; this will go miles in determining the applicant’s suitability and trustworthiness.No lender will like to lend money to someone that will not be able to pay back. Every financial expert will tell you to check your credit even when you think that it is in order.
The meaning of Bad Credit Score
So many people always talk about credit score, but only few of them are aware of the real meaning of bad credit score. There are many reasons why some people are turned down for loans, financing and jobs, while others are not. You will get to know it when you have completely read this page.
Getting a Free Credit
It is important things to have an estabilished credit, especially for anybody that is above eighteen years old. Even when you think that you will not take loans or borrow money, it is still good to have an excellent credit.
Presently, your credit score helps in determining everything from apartment rental qualification, jobs and credit cards. You may not get some privileges just because of a bad credit score you didn’t even know you had.
Three credit reporting agencies in US are as follows: Experian, Equifax, and TransUnion. All these three agencies generate your credit score and also gather data, and the good credit score range from 300 to 850.
You have a bad credit if your score is between 350 to 579. You can either hire a company or does self credit repair so as to be able to do for you. Make sure you hire a reputable firm so that you will not be laid off.
Sometimes you may have a low credit score simply because you don’t have already established credit. At such occasions you may contract a bad credit firm. They may require you to get buy something they are selling so that you will be eligible to get loan from them. It is very important to know your credit score, and if you are not sure of your credit score, you can make inquiry from credit report online. This will surely be a good idea for you, because it will reduce potential frustrations when you are searching for insurance or a loan apartment.