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?
En excellent credit score is anything above 700. With an excellent credit score you will be offered the lowest interest rates possible for any loan you apply for. A rating of 650, while not excellent, is not a bad score. You would want to improve it at all possible. If your score is between 450 and 650 this is considered a low credit score and you really need to try to improve it. More than likely you will not be able to obtain an unsecured loan. All loans that you apply for will require some sort of collateral. If your scores are below 450 it will be almost impossible for you to obtain any type of loan or credit. You will need to seek the help of a financial counselor and begin to work to improve your credit 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?
En excellent credit score is anything above 700. With an excellent credit score you will be offered the lowest interest rates possible for any loan you apply for. A rating of 650, while not excellent, is not a bad score. You would want to improve it at all possible. If your score is between 450 and 650 this is considered a low credit score and you really need to try to improve it. More than likely you will not be able to obtain an unsecured loan. All loans that you apply for will require some sort of collateral. If your scores are below 450 it will be almost impossible for you to obtain any type of loan or credit. You will need to seek the help of a financial counselor and begin to work to improve your credit 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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Can cancelling a credit card save you money on your debts? Find out whether they're as good as they sound on the Debtopedia website where you can get a free copy of my report Secrets Of Credit Card Debt
posted by Debt Consolidation Loan at
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