IS MY CREDIT SCORE GOOD

CREDIT SCORE

IS MY CREDIT SCORE GOOD

A good credit score is a credit score that very accurately reflects your financial credibility. In Other words how efficient you are at managing your credits and debts.

These days Most of the vital decisions are taken on the basis of a person’s credit score.

Your credit score is considered by employers to know how trustworthy and efficient you are.You are given employment on the basis of a good credit score.

Financial institution and lenders approve your application for loans and mortgage on the basis of your credit score

Cellular companies and landlords too consider a person’s credit score before giving approval.

The Higher the credit score the better as it give you More opportunities to avail credit.

Highest credit score is 850 .And the range of a good credit score is usually between 660-750.

But the criteria for good credit score varies depending on for what purpose it is being used. For example –a credit score that is considered good when applying for a credit card may not be appropriate when applying for a car loan or a home loan.

A person with a good credit score does not face any problems when borrowing for more money,Trying to obtain finance for mortgage or any other loans.

A good credit score opens opportunities for you to often apply and easily obtain approval for loans and mortgages.

The various points that are considered when determining a person’s good credit score by the credit bureau  are:

-His current and past financial situation for the past 2 years and more

-how well he has handled his financial responsibility-that is checking how often he has been regular in making his credit card payments on time and how often he has made delays in making payments.

-His debt to income ratio. the percentage of his debts are high compared to his income which might be low will negatively impact his credit score.

-The length of time of his credit and the number of times he has put in an application for credit will also adversely affect his credit score.

A good credit score  gives you the benefit of your applications for any type of financing being easily approved as it helps to gain the trust of financial institutions for monetary assistance.

You are charged lower rates of interest on your loans and other purchases.

In case of an emergency where there is in need of money fast your application gets easily approved.

770+ is considered as a very good credit score.

But even if you have a credit score of 680 and above even then you will get approval for loans at very affordable rates and terms by lenders and financial institutions.