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Business Management Understanding The Credit Score Rating Scale
Business Management Understanding The Credit Score Rating Scale
| Understanding The Credit Score Rating Scale |
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| Written by William Blake |
| Thursday, 07 August 2008 11:18 |
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No doubt about it, credit score rating scales are confusing. Working through all the numbers can leave you wondering what it all means. Understanding ratings and how they work will help you to read and understand your credit score more easily. There are several pieces of information reviewed by companies when they build your credit score. These factors include the following: - Past Payment History - Timing of Bill Payments - Outstanding Debt - Credit History Large amounts of debt and short credit history will result in a lower credit score even if there are no problems that stand against your credit. Recently, credit applications take your credit score into consideration. Applying often for credit by filling out store applications for credit cards will cause you to receive a lower score. High amounts of credit card debt at high interest rates will do the same damage. 700 or higher is considered to be a good credit score. Being awarded credit at low interest rates should not be a problem if you have a score of 700 or higher. With a score of 450 to 650 points to that your credit score needs improvement. Finding a loan or qualifying for a credit card t this score will be more difficult unless you have some type of security. Considered to be a higher risk, higher interest rates will likely be an issue as well. If your score is below 450, your credit is in need of some serious help. At this level you likely won't be able to qualify for a loan or credit card until you pursue some form of credit counseling to improve your score. If your credit score needs improvement, there are a number of sources that can help. There are many credit counseling services available, many of which are free to use. They will be able to assess your financial situation and offer advice as to the best route to improving it - and your credit score along with it. About the Author: Are you stressed out over your debt? Do you have a list of things you would do if all your money didn't get sucked up by your debt payments? Learn how to legally eliminate debt on the Debt Smackdown website. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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