Getting Up Close and Personal with Your Credit Score
Do you know what your credit score says about you? Undoubtedly you are quite familiar with the need for having a credit report devoid of bad notations, such as missed payments or repossessions, but how the scores are actually interpreted might not be as easily ascertainable as you thought. Credit scores range anywhere from 300 to 850. The higher the credit score, the lower the cost new credit will cost you. Conversely, the lower your credit score, the more money you will have to spend to obtain credit, usually in the form of higher interest rate. If your credit score is extremely low, lender may actually deny you credit altogether.
If your credit is excellent, very good, or even just good, you are considered to be a decent credit risk by potential lenders. An excellent credit score usually is found at or above 800. This credit score entitles you to the lowest interest rates, most advantageous loan products, and is the direct result of a long credit history that shows timely repayments and also a healthy balance between income and debt ratios. A very good credit score of 750 – 800 makes you an attractive credit risk for lenders, and you will have a good choice when it comes to loan products for your situation. There is the danger that you might slip, if you overdo the loan to income ration, so be careful!
