Credit Scores-

 

What it Reflects About you!

If you are looking for some loan approval or thinking of applying for credit loan for buying a car, firstly ensure that your credit score is good. Because if that isn’t good, then be sure that your application will be rejected, and that too will have a negative impact.
A credit score is the one all the money lenders have access to and rely on while deciding on lending you a loan or debt, or even a credit card. For those who are aware of this, might know how badly you try to keep your score on the higher side.
Though we can’t pin the exact number stating that it is good is difficult, we can analyse it based on few factors.
Well, do you know how the rating is done? We mean whether you are good, best or what next? The range of the scores is below, check where you stand.

 

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Check where you stand.

  • • Excellent or great: 750 and above

  • • Good: ranging from 700 to 749

  • • Fair: ranges from 650 to 699

  • • Poor: ranging from 600 to 649

  • • Bad: below 600


  • Well, this is in general and many companies relax these scores or even have different ranges which might be set to them. There are many companies who rely on different scale models and might consider you even when you have lower numbers.

    Different lenders have different credit score ranges. They develop their own range and it's important that you know them. By knowing it, you can know who is better for you, and why they are good.

    Below are the credit score ranges of the few major models:

  • • FICO range: 300 to 850

  • • Experian's Plus: 330 to 830

  • • Equifax: 280 to 850

  • • Vantage Scale (V1.0 & 2.0): 501 to 990


  • As said, the higher your score, higher are your chances to get loans across all lenders. Lower the numbers then your chances are lower too. Again, it depends on the company that you are approaching. The high at one place is never high at another, so take caution before you reach the company, know the ranges and then go ahead. Since everything matters in your financial report card, when you recently enter a bank for your loan and get rejected it naturally enters the card. And if you are a newbie, this might affect you with unnecessary troubles. We shall elaborate on what the scores actually mean and how should you move ahead.

    850 (even 800) and above (sometimes till 1000): Excellent score


    Meaning: you are a topper and are good at financial managing. You have already had some loans or credit history and have handled it exceptionally well.


    What should you do:

    this is a safe zone, so don’t do anything overboard! Stay the same, more responsible. People with high scores get a great chance of getting loans faster and at lesser interest rates too. Do you need anything more?


    700-800: very good:


    With this score, you still have the opportunity to improve at the same time to continue with this card. This score says that you are unlikely to have missed payments and will do in the future. They also say about your responsibility in managing finances timely.

    Credit Scores Services

     

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    What should you do?
    You are better than rest, yet can improve to reach the next higher level. Check what is stopping you from there; are you making a few payments late, missed one earlier? Check them and rectify.
    600-700: good:
    Mean: You are doing okay. It means that you still have a lot to be improved upon and are not a great financial organiser. Though there is no danger sign, you are just next to it and if you continue in the same fashion, might get you down to the danger zone.

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    What should you do?

    You must gear up your sleeves and be always punctual in paying bills. Never wait until the date, go and get it done when possible. Brush up a little about money management skills, before you apply for loans with these scores.

    500-600: Average score

    You are almost in the danger zone, you will surely have some troubles in getting a loan or credit debt. So hone your skills and get a little out of this place to get loans for your car or home.

    30 June

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    What should you do:

    Keep up the payments on time. Try eliminating debt for time being and if needed take financial advice. It means you have missed many payments, late payments many times etc.

    500-0: Too bad

    This is the worst spectra one can be in, and looking for loans with this number will never land you anywhere. You will never be considered to even open an account of Credit card..

    30 June