| With the ups and downs of the economy recently | | | | very little chance you will qualify for any type of loan. |
| credit scores has been a popular topic in the media. | | | | This is because there is discrepancies on your credit |
| Credit score is important because it determines if you | | | | history that show you are not capable of paying the |
| are qualified to buy things like cars, houses and other | | | | monthly payment on time every month. So what is a |
| large ticket items. In other words, you need a good | | | | decent score? Financial companies consider a |
| rating to obtain any kind of loan. With this being said, | | | | mediocre score to fall anywhere between 620 to 659. |
| there is a ton of confusion when it comes to the ins | | | | You chances are of getting a decent size loan with |
| and out of the rating system. Banks, credit card | | | | mediocre is a toss-up. If your credit score is higher |
| companies and loan consolidation companies have | | | | than 659 you are considered to be in good shape. |
| created large misconceptions about it and what | | | | Having a good score will allow you to get better |
| affects your score. | | | | interest rates as well. Most people will never obtain a |
| Credit Score vs. Credit Rating | | | | score higher than 760. Anything above 760 is golden. |
| Most people are not aware that a credit score and a | | | | What Determines a Score? |
| credit rating are two different things. A credit rating is | | | | There is a very complex formula used by credit |
| when a person's score, history and other aspects of | | | | reporting agencies to calculate an individual's score. |
| their financial history are taking into account to | | | | There are five elements that are used to determine |
| determine if they qualify for something. With this in | | | | your score, which include: owed accounts, payment |
| mind, a credit score is simply the number that | | | | history, credit history length, recent borrowings and |
| describes your credit. A score can range anywhere | | | | type of credit. Each element is weighted differently. As |
| from 400 to 894 points, with 894 being the best. There | | | | you can see, there are some elements that you are |
| are three credit reporting agencies that determine a | | | | not in control of, like the length of your credit history. |
| person's credit score: Experian, Equifax and | | | | This is why young adults sometimes experience a |
| Transunion. You can obtain your credit score by | | | | lower score than they should have. |
| purchasing a credit report from any of these agencies. | | | | This is just a brief introduction to the complex world of |
| Meaning of a Credit Score | | | | credit. The increased use of credit cards has made |
| So how do you know what it means or what you can | | | | this a very popular topic in the news and the daily life |
| get with it? Scores are usually evaluated by the | | | | of an individual. Credit is hard to repair so be careful |
| particular range of scores they fall into. For example, if | | | | before you choose not to pay your next bill. |
| you have a score between 500 and 579 then there is | | | | |