Your credit score is, without doubt, the most vital part of being able to take out a loan. If you have good credit then it will appear to be far easier to be able to take out a loan as it will show that you have a good history of paying off your debts. Meanwhile, in the red zone if you have bad ratings it will be far more difficult to be able to take out a loan from a bank loan company. This is because they will trust you less in repaying your debts than they would someone with a better record. We’ve taken a look at what your credit score means.
But, how do you know whether you fall into a bad or good bracket? Well, let’s discuss what your score means for you, and what you can do to rectify the issue, if you have one of course.
What your Credit Score means – 961 – 999 Excellent Credit Score
When you have this credit rating you should get the very best credit cards, loans, and mortgages. This isn’t a guarantee but chances are you will be able to get the best offers from lenders.
881 – 960 Good Credit Score
If you have this credit rating you should get most of the best credit card, loans and mortgage offers available to you. but the very best deals may reject you.
721 – 880 Fair Credit Score
You will have Ok interest rates but your credit limits may not be very high, so chances are you will be rejected for the top deals as well as a few of the deals that would be available with good credit.
561 – 720 Poor Credit Score
You might be accepted for credit cards, loans and mortgages but they are near enough guaranteed to have a higher interest rate.
0 – 560 Very Poor Credit Score
You are extremely likely to be rejected for most credit cards, loans, and mortgages that are available to anyone with anything above a poor credit score.
So, now onto what you can do to help improve your chances of landing the best deals for credit cards, loans, and mortgages no matter how your credit score is looking.
Watch your credit card balance
One major factor in what your credit rating means and how it rates is how much revolving credit you have versus how much you are actually using. The smaller the percentage is, the better it is for your credit rating.
What your Credit Score means – Leave old debt on your report
Some people believe that leaving old debt on their credit report is bad, well it’s the opposite. Good debt, debt that you’ve handled well and paid as agreed is good for your credit rating. The longer your history of good debts is, the better it is for your score.
Pay Bills on Time
If you’re planning a major purchase such as a home or car, you might be scrambling to assemble one big chunk of cash. When juggling your bills, you don’t want to start paying bills late. So, avoid this at all costs.
