CREDIT SCORE 530

 credit score 530 is considered to be a bad credit score.It means that you have been very irresponsible in managing your credit in the past . credit score 530 indicates your weak financial health. credit score 530 is an indication of a lot of negativity in your credit history.

It will take a lot of time in bringing it up to a decent score to get approval for loans from lenders at reasonable rates of interest. The chances of getting a loan on the basis of this credit score are very low.Even if you do get a loan on the basis of 530 credit score the rate of interest will be very high..In other words you will end up overpaying for your loans

The main reasons that could be behind your bad credit score are”

Late payments-You  have not been making your payments on time.a low or poor credit score could be due to a few late payments made by you which affected your payment history badly.

High outstanding balabces is another main reason for low credit score.When your outstanding  balances are above 35% of your available credit limit,it negatively affects your credit score.The higher the percentage goes the further down your credit score will go.

This credit score also means that there might be a foreclosure or bankruptcy in your credit history.

You need to take some serious action to repair your credit score and boost it to a decent score

Ways in which you can improve your credit score

The first thing that needs to be done is procure a copy of your credit report and go over it very minutely for any errors and take measures to correct them.Try to review your credit report at least twice a year.

Start making payments that are overdue or above 35% of your total available limit to come out of debt.Try to bring it down to 5% of your total available limit.This will have a very positive effect in improving your credit score.

Don’t apply for any more credit.

Make regular and ontime payments of your bills.Try to keep a clean payment history .

Request your lenders for a better rates of interest on your loans.

It will take time to boost your credit score .Keep patience and try to work at it from a long term prospective.

700 GOOD CREDIT SCORE

700 GOOD CREDIT SCORE

                           700 GOOD CREDIT SCORE 

 700 credit score significance varies from situation to situation. 700 credit score means that you have worked very hard in maintaining a clean credit payment history,there have been no defaults in making payments at your ends,you have handled your credit extremely well.Your 700 credit score is an indicator of your financial health.

700 credit score is the result of your:

 REGULAR PAYMENT HISTORY

ZERO OUTSTANDING DEBT BALANCES

YOUR low  DEBT TO CREDIT RATIO

NEW LINES OF CREDIT OPENED BY YOU

THE TYPES OF CREDIT USED BY YOU(CREDIT CARD,MORTGAGE LOAN,CAR LOAN,STUDENT LOAN)

DURATION OF YOUR CREDIT HISTORY

However your 700 credit score does not give you any assurance that you will be easily approved for any loan that you apply for.You can easily get 700 credit score with one credit card.If your 700 credit score is the result of using only one line of credit say a credit card ,it will not get you a car loan.

If your credit score qualifies you for a loan and that too at the best possible rates of interest,you can definitely say that your credit score is a good one.To know that 700 credit score is good or bad depends a lot on the risk category you would be allotted based on your score.If you are given a high risk category with a high rate of interest,your credit score is bad OR below average.As some financial institutions or lenders may consider  740-790 as the best credit score.

You will have to make an effort to maintain and take this credit score further up to give you more benefits and perks.It would be very easily to go down a 100 points by making one late payment.But taking it up by another 50 or 100 points will not be that easily.You will have to look for areas that need to be improved to increase your credit score like-maintaining different mix of credit,keeping credit balance of your credit low,wisely manage your debt etc.

700 credit score is on the verge of turning into a better perfect score or one slip and it will be down near 600.Whatever action you will take will directly affect your credit score and this score will keep on changing from month to month.

To sum it up-A 700 good credit score is not a guarantee ticket of your loan applications be automatically approved for you by the lenders at the best possible rates.

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