How to Interpret a Credit Score Scale

When it comes to your credit, nothing is more frustrating then having a low credit rating and not knowing what caused it or how to improve it. Credit is a big part of our lives now, to get a car, a house, schooling, or any other big purchase usually credit or loans are necessary. Here is a little information to help you understand the credit score scale and what it means.

First of all scores range between three hundred and fifty and eight hundred and fifty. A good score would be one that falls in the seven hundred to eight fifty range. These people typically have no problem getting loans, credit, or any other financial option and are considered to have excellent credit. Four hundred and fifty to six hundred and fifty is a bit lower and most of these people can still find avenues for credit but usually with higher interest rates and a lot of hiccups along the way. Four hundred and fifty and below is considered poor credit and typically those people with a credit rating in this range are denied any type or form of credit. So the question is, what does the credit score consist of so I know what to fix and improve on?

Credit rating score scale factor in a lot of things, first and foremost your payment history. Late payments, amount of payments etc. They also factor in how long you have had credit. If you are a beginner to credit you will probably have a low rating because you haven't proven yourself yet. Also included are credit inquiries, and credit applications, all of which have an effect on your credit.

The better you know what goes into your credit the better you can do at fixing it. Make sure you know your financial situation and then work on making it better.

Source by Scott Paul

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