Your credit score range has a lot to say about you; it gives lenders useful information about your financial status. If the score is on the high side, it tells them that you are trustworthy, dependable, and uses your credit wisely.
Lenders will be coming back to you, such that you don’t have to be moving from one place to another in search of a lender.
Free Credit Score?
If your free credit score dropped or is low, it quickly tells the lender that you are struggling to survive or that you have delinquent accounts. There are chances that you will not be given loans, because lenders will see that it would be too risky granting you a loan.
If you don’t have a score at all, you means that either you have had a troubled past or that you are too young, but is able to pay funds for all things including mortgages.
Your personal FICO score can either be high, medium or low with the range of credit score:
- When we talk of low, we mean 560 or low. You don’t have to worry if you are wealthy. You have to work very hard in upgrading the score up so that it can be able to clean up your financial status.
- Medium is within the range of 560 and 720. The higher your score, the lower the interest rate.
- When we talk of high, we mean 720 and above. In this case, you are considered a low risk, and will surely qualify for interest rates and best loans.
FICO score can be greatly determined by the following checklist:
- Payment history
- Credit amount versus balances
- Kinds of credit accounts
- State of credit history
- Number of new accounts
Others include the amount of inquiries in your credit score. If you are undergoing a financial issue or if you suspect thatyour FICO is low, you don’t have to worry, because it can be repaired within the shortest period of time.
You are required to know your position in the credit score range, and also know what you have on your credit score. Make sure you check the credit report carefully if there are mistakes, and notify the credit department in writing if there are differences or discrepancies.