Your credit score ranges are an important asset, and it is vital that you treat them as such. Without careful attention, it is possible for your scores to drop to the point where it would be almost impossible for you to acquire a loan of any sort. Why is this? Almost three-quarters of lenders pay close attention to your credit score when you apply for a loan. More than anything else, these scores affect what sort of loan terms and interest rates that you will be able to obtain, for the scores are the only “you” that a lender will see. Never underestimate the importance of your credit record, for it determines many other important things, such as:

Mortgage types available when you buy a home Down payment amounts Car Loans Insurance premiums Whether or not you will be hired for a job you are seeking

Of course, in order to be able to interpret your credit worthiness score, you have to have a copy of your credit report, which you can get by contacting one of the “big three” credit bureaus. Once you have this report in hand, it’s time to look at your stats and see how you stand.

How High Can A Credit Score Go?

Credit scores can range from a high of 850 to a low of 300. Of course, the higher the score, the more likely you are to get a great interest rate and approval for a loan. With a score of 700 or above, most lenders will see you in a very favorable light, for your credit to be considered in the category of Excellent to Very Good. Depending on how much over 700 your score is, some lenders will offer you even better rates than the 700 and below score crowd receives.

A score of 680 to 699 means that your credit is considered to be Good. You aren’t considered as a credit risk with this score, but you won’t get offered the lowest of interest rates like those with higher scores.

The range of 620 to 679 is considered to be OK. It’s not low enough to get you denied for a loan, but you will definitely not have the best terms.

A score of 580 to 619 is considered to be Low. With this low of a score, you are teetering on the edge. You are almost at the point where you can’t get a loan at all. Loan officers will manage to work with you, but the loan will definitely be more expensive for you in terms of interest. And, you won’t have much of a choice, as if you want the loan, you’ll have to pay the price.

The range of 500 to 580 is considered to be quite low. If you are in need of a loan with a score this low, you will only be able to get a specialized type of secured loan tailored to people with bad credit.

If your credit score ranges between 499 and 300, you really should consider credit counseling or a debt management program. But, take heart – with a little diligence, you can raise your credit rating and improve your credit report.

By: Ann Richter

About the Author:

Iris

Your credit score is your financial report card, but more than that it is an indicator of how responsible you are. It shows lenders, employers and landlords your ability to be trustworthy, manage money and stick to your end of the bargain when obtaining loans.

For that reason, your credit score can have big implications on your life. From being approved to an auto loan, to obtaining a mortgage at a fair rate. The higher the credit score, the easier it is to obtain loans at the best possible rates. When you have a score that is better than average, banks, lenders and creditors are willing to throw money at you with no questions asked and with flexible repayment terms.

Luckily, for someone who has a below average credit score, there are a number of steps they can take to improve their credit worthiness. The fastest way to raise your credit score, however, depends on your current situation.

The credit score is determined by the information that appears on your credit report. Some of the information has more weight than other data, so when working to raise your credit score you wan to start with those areas that have the greatest impact.

The individual’s credit history, for example, accounts for about 35% of your credit score. In other words, how good you are about paying your bills on time. Therefore, the best thing you can possibly to do instantly raise your credit score is to make sure you are making payments on time. But you also want to check your credit report to make sure you are not being falsely misrepresented . . . and chances are that your credit report is not accurate.

One out of every 4 credit reports has information on it that is inaccurate and damaging to the individual’s credit score. So the first thing you want to do is review your credit report and make sure there are no indications of late payments or delinquent accounts that are not actually true. If you find these, all you have to do is notify the credit reporting agency and they have 90 days to investigate and resolve the situation by law. Removing this false information will boost your credit score.

Double checking for accurate credit history on your report is one of the biggest ways you can boost your credit score. This can take a couple weeks to resolve and be reflected in your credit score. In the meantime, there are a few



By: Ryan

About the Author:

Avery

Stuart Hunter asked:


Getting started with repairing your credit is one of the very best things you can do for your financial well being. At the hands of the credit system, you are being abused in the form of inaccurate reporting and an unfair credit scoring model. Through credit repair, you can do your part to make sure you get the credit score you deserve – a credit score that is truly indicative of your credit worthiness.

Choosing the right credit repair company to help you achieve your credit goals is pivotal. What follows are tips and things you should look for when choosing the best credit repair company for you.

1) Look for a credit repair company with experience

An experienced credit repair company will have taken the time to learn what tactics work best for each type of dispute. Having a large number of clients and a track record of removing many items means that a credit repair company has enough information to know what works and what does not.

2) Look for a credit repair company that has been in business for a while

Credit repair, like many other industries, has it’s fair share of scammers. Preying on desperate people who long for a better credit score, fraudulent “credit repair” companies promise amazing results but the only thing they manage to do is take off with your money.

Fortunately, these companies never last very long. They are either run out of town or shut down by the FTC or local law enforcement. What this means for you is that you can usually trust a credit repair company that has been in business for a number of years.

3) Check out the company’s BBB report

To start with, look for the BBB’s rating of the company and their explanation of this rating. For example, the BBB report for the credit repair company Credit Bureau Experts shows the company as having an unsatisfactory rating because of unsubstantiated advertising claims made on their site.

Also look at the number of unresolved complaints to see if the company has been responsive to their customer’s problems. Almost all companies will have some complaints, and the larger the company the more complaints it will have, but it is how they deal with these complaints that is important. Look for a company that addresses the concerns of its clients as opposed to a company like Credit Fix Now (see BBB report) who has an unsatisfactory rating with the BBB for not responding to to complaints.

4) Get the details on the company’s payment policy

A common tactic of fraudulent credit repair companies is to charge you a large fee upfront and then either disappear with your money or otherwise not perform the agreed upon work. Many of the companies have been known to charge several hundred or even thousands of dollars before they will do any credit repair work.

Even though the practice of charging large upfront fees is illegal, there are still a number of smaller credit repair companies that try to get away with it. For example, the companies Credit Clean and Today’s Credit Solutions are perfectly content to charge you one time fees of $1223 and $499.99 respectively for a year’s worth of credit repair service. Granted, these companies may offer money back warranties, but that will be of little use to you if the company goes out of business or otherwise disappears.

5) Watch out for companies that guarantee to raise your credit score

To help protect you against credit repair companies who make impossible claims, the Credit Repair Organizations Act also forbids any credit repair organization from making guarantees about the results of their service when it pertains the the effect it will have on your credit reports.

While searching for a credit repair company, take note of any claims to “increase your credit score by 100 points”, “lower your interest rates”, or “remove all negative items from your credit reports”. No company can legally make these claims and any company who implies they can should be avoided.



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