Free Articles, Free Web Content, Reprint Articles
Thursday, July 2, 2020
 
Free Articles, Free Web Content, Reprint ArticlesRegisterAll CategoriesTop AuthorsSubmit Article (Article Submission)ContactSubscribe Free Articles, Free Web Content, Reprint Articles
 

What Is A Good Credit Score Defined

If your starting your financial life you'll begin to learn that good credit score ranges will play an important role in reaching your objectives. Here's all you need to know about what is a good credit score.

Several points come into play to answer the question of what is a good credit score. One's level of ongoing credit risk is what makes up the credit score number. The higher the number, the less risk a loan will entail. A lower number would increase proportionately the level of risk to the lender. While lending companies vary their methods, their bottom line is to successfully match their top-dollar loans to the most viable borrowers. Lenders interpret the credit scores with a keen eye to detail concerning loan amounts and interest rates.

Credit score ranges can start as low as 300 and peak at a highest possible score of 850. Credit bureaus use a standard breakdown of the total score as follows: Thirty-five percent payment history, thirty percent amount owed, fifteen percent credit history length, ten percent new credit information, and ten percent types of credit.

A potential borrower can find out about identity theft and spot errors of all kinds in credit reports, which can be requested from three sources. Equifax, Experian, and Trans Union are all credit bureaus that can issue an free annual report. Once a report is in the hands of a potential borrower, that individual can scrutinize payment histories and amounts owed, both current and fulfilled. Discrepancies between the written report and what it's owner knows to be true must be brought to light.

Setting the record straight in favor of its owner will naturally result in a higher credit score, something that is most desirable. The quickest credit approval comes to those with the higher scores. Similarly, the best credit offers with lowest interest rates will generally be awarded those with scores upwards of 700, considered very good to excellent.

Lenders rate the amount of risk according to six basic categories:

Score breakdowns are defined as 300 to 579 poor, 580 to 619 fair, 620 to 679 okay, 680 to 699 good, 700 to 759 very good, and 760 or above, excellent.

A half-year to one year before applying for a major loan, a borrower needs to start verifying and correcting their credit reports. This may mean, for example, that the borrower will need to contact a previous lender about an erroneous late date, perhaps, for a payment. A list of mistakes such as this example may hurt the loan process. The borrower will need to let the potential loaner know about these mistaken entries in the report.

A borrower can address specific items to gradually elevate their score. Timely payments on bills, lowering remaining balances on accounts, and refusing new debt all come into play.

A potential borrower can do the following to gradually elevate their overall score:

Financial problems may render a person unable to pay a bill in full and on time. In this case, creditors and credit counselors can help. In fact, the very people who need payment are sometimes uniquely qualified and willing to ease the payment deadline or amount.

Paying in full credit card bills by their cycle deadlines will increase one's score.

Closing an account will not make late payment history disappear on future reports. To take advantage of the potential for a better report, a borrower can be certain to make prompt payments before the due date.

The longer a credit history becomes, the more valuable the record is for a potential lender. Five years is a minimum goal to achieve.

Responsibly managing one's borrowing habits will logically result in good credit score ranges.

Article Tags: Good Credit Score, Good Credit, Credit Score, Potential Borrower

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR


If you are looking for more as it relates to what is a good credit score please follow the link. You will find more info on credit score ranges as well as other popular financial tops reviewed.



Health
Business
Finance
Travel
Technology
Home Repair
Computers
Marketing
Autos
Family
Entertainment
Education
Law
Communication
Other
ECommerce
Sports
Home Business
Self Help
Internet
Partners


Page loaded in 0.217 seconds