What Is A Good Credit Score? What Is A Bad Credit Score?
Credit Report Score For every individual credit report, the credit report agencies apply a score. The agency uses the same scoring for everyone. The credit score would vary from person to person depending on individual credit record. You would have a good credit score if you have good credit and bad credit score if your have a poor credit. Good Credit Score It is very important to have a good credit score to have a better command over your financial affairs. A good credit score saves you lots of money. You can obtain lower interest rates on mortgages, car loans or insurance premiums if you have a good credit score. Therefore, you should exercise restraint while making purchase on credit. A good credit score helps you obtain different types of loans easily. A financial institute would give you easy loans if you have a good credit report score. The same applies with personal loans and auto loans. There is no precise definition of a "good" credit score. Different lenders have different standards for allowing credit. A credit score that is acceptable for one lender may not be acceptable for another. Though there are varied standards for credit, your FICO score can give you a general guideline. 700 or higher points are very good in mortgage lending. It will require some scrutiny if it is 650. It will further result in higher interest rate. Nevertheless, the same score may be enough when purchasing a car or shopping in a departmental store. Bad Credit Report Score Bad credit report scores indicate slow pays, late pays, no pays or combination of these. If you have records of paying slow or late, it will show to anyone accessing your credit report. You will spoil your financial position if you fail to make payments for a few bills. You cannot expect credit from anyone in such a case. The financial institutes decide whether to loan money to you depending on what type of a credit record you hold. No such institution will give you credit in case you have a bad credit report score. Even if you manage to get credit, you will have to pay heavy interest on it. There are ways to improve your credit score. You need to exercise restraint in making purchase. You should make it a habit to pay the bills and other payments on time. It is necessary to check your credit report and score regularly. You should take immediate measures to correct any errors or incomplete information that you may find in your credit report.
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