This is a number from 300-850 by which we can identify the creditworthiness of the particular user. As the score is on the high side it reflects that the debtor will kept his eye on the loaner which is implicit. Credit score depends on the credit history, such as user’s accounts that was registered to his name, total debts he takes, and his record of requital. This history and data of credit score helps the lenders to investigate whether to give the debt or not.
Where to see Credit Score:
In order to know my credit score, firstly you must kept in mind that credit score are not single or one only for a particular customer it may be more than one. This calculation is relay on the history of your credit reports gratified.
There are three basic nationwide bureaus that give this data from where you can search out my credit score like Equifax, Experian and TransUnion.
How to see my Credit Score?
- See the Financial record, loan statement of your credit card: Now a days most of the banks and credit giving firms initiated the step to facilitate their consumer by including information on the bank statement, or they can easily available through online account services.
- Purchase credit scores directly: The three bureaus as mentioned above and some other like FICO you can buy from them easily.
- By using credit score service or free credit scoring site: Many of the online sites gives the access to their users for free while there are some others who charge their subscription charges in giving the valuable information about your score.
What is a Good credit score?
As we know that credit score is a three digit number that’s ranges from 300 to 850. There are different models designed to check credit score. Creditors and potential lenders use credit score to decide whether to give you loan or credit card. This is the easiest method to determine that how much you are capable for paying back the money they lend to you. Everyone’s financial situation is different from others also credit situation is different. Nothing can determine loan rates and terms as there is no magic number. Ranges of credit score model depends as “FAIR” is considered the score ranges from 580 to 669 ; “GOOD” credit score ranges from 670 to 739; “EXCELLENT” credit score is 800 and up. If you have higher credit score that means your credibility is considered to be responsible behavior in the past. And this will help lenders and creditors to evaluate your request for credit. Landers have different criteria and term for granting you loan or credit and this criteria includes you information relevant to you income. So the criteria may depend and vary to accept the credit score.
Lenders check for those who have credit score 670 and up are considered as acceptable or low risk borrower. While other having credit score ranges from 580 to 669 are considered as subprime recipients this means it is difficult for them to qualify for loan terms. And those having credit score less than 580 are taken as poor borrowers and there is a huge difficulty for them to qualify for better loan term.
What is bad score?
According to FICO bad credit score is the score that is below 670. As we discussed earlier score from 580 to 669 is considered fair. If you have the highest credit score you are more likely to be qualified for credit, loan and interests. But if you have bad score that is below 500 then you might face difficulty in attaining all these. You have to maintain your good score as a preventive medicine because you never know when you need it, when something you might come up with. Breakup with your family will make you in search of new apartment and this is the time your credit score will secure you from any hassle. If you have a bad credit score you might come up with these problems:
- You will get rejected for loan and credit
- You will face difficulty in the approval of your rental application
- Gas, electricity and water utilities in new house may require security deposits.
- Face some trouble buying a new cell phone contract
- Face issues in new employment as some employers check you background regarding credit report.
- Premium Car insurance companies in some also need information regards to your credit score. And bad credit score will make you let down in this case also.
How to improve your bad credit score?
There is nothing that difficult in maintaining and improving your bad credit score. You have all the control on your credit score for sure. Like you have control on your financial health which will directly and positively affect your credit score. There are some ways you can
- You have to check your credit score that are Free.
- You have to pay your bills on time
- You must pay your down debt
- Don’t pay or delay your apply for the new credit in that time
- You must boost your credit to strengthen your credit score
- You might take help from others to build your credit score
If you are having bad credit score that never means you are weighing down. There are many ways you can improve it today by taking actions that are recommended and in future you might have the highest credit score that is possible. You must know where you stand right now and don’t avoid the reality of your credit score status these tactics will help you drive the credit score up. View your credit score report on and off and you will be the master of your own financial welfare.
Causes of bad credit ratings:
There are most common reasons of bad credit score one can have that are:
When you fail to stick to the agreement of credit
If you pay the minimum amount each month from your credit card
If you don’t have credit history at all
If you are subjected to CCJ (Country court Judgment)
If you choose the wrong credit card that has limited credit and interest rates
If you are making late payments or if you miss a payment or if you pay less than the required amount these actions are added to your credit history and becomes the causes of bad credit score.