A credit score is a term you must have heard at least once in your life, but maybe you are not aware of it as much. It is a tool used by lenders, banks, credit card companies and agencies, also car service providers to make a proper financial decision whether to offer credit or not.
However, everything about this would be meaningless until one understands what credit score is and when and how it can be a good credit score.
Here is a list of facts and based on credit score, report, and history.
1.A credit score ranges from 300 to 850. Credit score 700 or above is considered to be a good credit score, while the score 800 or above is simply outstanding. In general, most credit scores fall between 600 and 750.
2.A credit score is a tool that lenders use to make decisions about how people would repay loans before the deadline.
3.It is always important to have a good credit score. It helps examine whether you qualify for a loan. A good credit score implies that you can rent the apartment you want or get your phone serviced with ease.
4.Credit score and your financial needs go hand in hand. Whenever you plan on investing your money in buying either a house or car, the credit comes into the picture. No major financial goal is complete without a credit score system.
5.Your credit report consists of your credit score just as your school academic report has your score. If we consider the credit score to be a report card that must be reviewed at the end of school term, but instead of marks and grades, you end up with a scoring range.
6.Every time the lender requests, your score is generated as per the credit scoring model of their choice. Credit scores are not stored as a part of credit history.
7. A good credit score encourages the lender to believe that you are eligible to qualify for a loan.
8.Well, the credit score is not everything that is looked into. A credit report contains some other information that is considered as well. Information such as debt total amount, credit types in your particular report and derogatory marks (if any).
9.Total expenses and your debt-to-income ratio are also looked at by the lender. These all points are based on the fact that credit score is an important thing and should be taken care of.
Finance is a big part of our lives today, and we all must know what the insight topics mean and play what role in our life.
As much as it is important to know about credit score, it is also important to know how to maintain a good credit score that will always be in your favor.
For more tips and facts about Credit score, Credit history or Credit report, type ‘get my credit score’ or ‘get my credit rating’.