Why Your Credit Score is Important
Beth Pardue
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.credi t-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.
------------------------- 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. -------------------------
About the author: 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.credi t-report-credit-score.com
The latest information and news on Credit Repair:
Recession-hammered homeowners' credit scores are on the decline across the country, say scoring industry experts, and that makes more consumers vulnerable to scams that purport to erase delinquencies, judgments, foreclosures and other problems from files at the three national credit bureaus -- Eq...
Experts Warning Against Credit Repair Companies
A company advertising in the ArkLaTex is making claims they can erase your bad credit.
Falling credit scores give rise to rehabilitation scams
By Kenneth R. Harney, Special to the Times Wednesday, September 8, 2010 Falling credit scores give rise to scams offering to fix problems WASHINGTON ? Recession-hammered home-owners' credit scores are on the decline across the country, say scoring industry experts, and that makes more consumers vulnerable to scams that purport to erase delinquencies, judgments, foreclosures and other problems ...
Foil 6 common consumer credit complaints
Consumers are increasingly steamed about credit practices and abuses.
Consumers cool it with credit cards for 23rd month in a row
Consumer borrowing fell again in July (by 1.8 percent) as households cut back on their credit card use for a 23rd consecutive month.Borrowing dropped at an annual rate of $3.6 billion in July, the Federal Reserve reported Wednesday. That marked the 17th drop in credit in the last 18 months. Borrowing in the category that includes auto loans rose 0.6 percent in July after gains of 3.2 percent in ...
Credit Card Use Falls For 23rd Month In Row
Consumer borrowing fell again in July as households cut back on their credit card use for a 23rd consecutive month, adding more drag on an economy struggling to mount a sustained rebound.
Huttig Building Products, Inc. Extends $120 Million Credit Facility
ST. LOUIS, MO--(Marketwire - September 10, 2010) - Huttig Building Products, Inc. ( OTCBB : HBPI ), a leading domestic distributor of millwork, building materials and wood products, today announced it has entered into an agreement to amend and extend its $120 million senior secured credit facility. The amendment, among other things, extends the facility from October 20, 2011 to September 3, 2014 ...
Consumers cut back on credit cards again
Consumer borrowing fell again in July as U.S. households cut back on their credit card use for a 23rd consecutive month, adding more drag on an economy struggling to mount a sustained rebound.
Consumers cut back on credit card use once again
WASHINGTON -- Consumer borrowing fell again in July as households cut back on their credit card use for a 23rd consecutive month, adding more drag on an economy struggling to mount a sustained rebound. Credit card - Financial services - Business - Credit - Personal Finance
Obama Calls for Permanent R&D Tax Credit
U.S. President Barack Obama has called on Congress to approve a permanent research and development tax credit for U.S. companies as part of a multibillion-dollar package intended to jump-start the nation's economy.