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Credit Score and It’s Affect To Your Financial Life

A Credit Score Is…

A set of three digit number on which serves as the average of your credit grades  shown on your credit report. The grade is evaluated by financing institutions based on your re-payment mannerism. If you pay good then you’ll have good score.  The higher the score, the better. The score usually ranges from 350-800.

 

Credit and Credit Score

If you pay accordingly, then you’ll be given a good score. The score is basically coming from your monthly utility bills, credit card re-payment, mortgages and other credit or debts. When you loan to a bank, you are usually asked for your credit score. Some employers would ask the credit score of their applicants. When you seek for mortgage, the provider would typically ask you your credit report. At times, landlord will ask for credit score from their renters too.

Every once in a year, a consumer is given 1 free credit report. You can obtain them at Equifax, TransUnion or Experian. If you need one more credit report in the same year, then you’ll have to pay somewhere around 15 bucks per copy.

Credit SCORE Itself

Credit score itself is very powerful. It does not generate on its own but this score is base on how you pay your debts. It has the power to help you in your financial matter and it also has the capability to completely ruin your life. “What goes around, comes around”, they say. Read further..

How Does These Numbers Affect Your Life?

Pros of Clean Credit Report:

  • Can easily loan money. Once the bank sees that you passed on their credit trustworthiness evaluation based on your credit score, it would be easier for your loan to be granted. A lot of loan providers would even ask you to borrow money from them.
  • Pay less interests on your mortgages and loans
  • Easily rent home

Cons of Bad Credit Standing:

  • Huge chances of loan application denial
  • Pay higher interest rates on mortgages and loans
  • Landlord would usually not let “you in”

Score Ranges

750-850 Excellent

720-749 Good

660-719 Fair

620-659 Uncertain

620 and below Poor

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August 30, 2012 - Posted by | Credit Score | , , , , , , , ,

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