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Why Your Credit Score is Important
Your credit score can either haunt you or reward you. It all
depends on how you handle your credit and payment activities.
Your credit score determines what interest rates you will pay and
if you are even approved for a loan or a credit card at all. In
addition, your credit score can play a factor in renting your
next apartment or getting hired from a potential employer.
Your credit score is compiled from the information on your
credit report. The performance of your credit activity is rated
on a numerical scale from 350-850. This number is your credit
score. The higher your credit score, the better. Late payments,
delinquent accounts and maxed out credit limits are all things
that can lower your score. Below is a general guideline to
determine what your credit score means in terms of getting
approved for a loan or receiving credit and what type of interest
rates you can expect to pay.
750-850: Is considered to be an excellent credit score. You
can expect approval and should receive a great interest rate.
680-749: Is considered to be a good credit score. Generally
you should be approved and given a favorable interest rate.
620-679: Is considered to be a middle of the road score. You will
more than likely be approved but you may have to pay a higher
interest rate.
550-619: Is considered to be a low credit score. You can find
lenders who will approve people with poor credit scores but they
will probably charge very high interest rates and fees.
300-549: Is considered to be a very bad score. It will be a
challenge to find a lender that will offer you credit at all.
Do you know what your credit score is? Having this information
can save you the time and hassle of trying to get approved for
loans that you may not even be eligible for. There are many
reputable companies like http://www.credit-report-credit-score.com
that can provide you with your credit score for free.
If your credit score is lower than you need it to be, there
are many ways to get your score up. It will take some time and
diligence but it can happen. There are credit repair companies
available to help get your credit situation back into shape. But
there are also actions you can take on your own to improve your
credit score.
First, you have to be sure to make all of your future payments
on time. Late payments can be very detrimental to your credit
score. Secondly, you should try to stop charging if you have a
lot of credit card debt. If you do have a lot of credit card
debt, you should try to pay the balances down as much as
possible. Do not attempt to obtain new credit and do not fill out
excessive amounts of loan applications. New accounts and numerous
credit application inquires can be a hazard to your score.
If you currently have a good credit score, then make sure you
keep it! If you are beginning to have financial trouble and your
monthly payments are becoming a challenge, try at all costs to
avoid defaulting on any of your loans, especially your mortgage.
Taking out a debt consolidation loan is an option that can help
ease your monthly payment obligations and keep you from ruining
your credit score.
With all of this said, you can see why your credit score is
one very important little number.
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Note: This article may be freely reproduced as long as the
authors bio paragraph at the bottom of this article is included,
the article is published "as is" (unedited) and all URL's are
made active hyperlinks with no syntax changes.
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This article was written by Beth Pardue who has over 10 years
of experience in the financial industry assisting clients with
assorted financial needs. To learn more about credit reports or
to get a free credit report online please visit: http://www.credit-report-credit-score.com
MORE RESOURCES:
Credit - Google News
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