What Is Classified As A Good Credit Score?
While different lenders have different standards of rating credit scores, all lenders consider 700 to 850 a good credit score. You credit score is important as it determines your eligibility on a variety of things such as qualifying for a new credit card, qualifying for a loan, and obtaining new/lowering your current interest rate. The higher your credit score, the better your chances of getting approved. Having stellar credit does not guarantee that you will be approved for the loan or credit card, but knowing where you stand gives you the confidence to apply for the things that you need the most.
Credit scores are very specific. For example, two people may have the same credit scores, but reasoning for their scores may vary. The best way to maximize your credit score is to review your credit report and to identify the specific items that are affecting your credit score.
There are a few things that DO not determine your credit score.
The Consumer Credit Protection Act, was established to promote the accessibility of credit to all creditworthy applicants.
Your score is not calculated by:
- Your age
- Your sex, color, race, religion, national origin, or marital status.
- Your occupation, salary, title, employment history (However, this information may be considered by lenders in making their overall approval decisions.)
- Your location
- Certain types of inquiries; “consumer disclosure inquiry,” “promotional inquiry” or “account review inquiry.”
Minimum Credit Scores
What minimum credit score do I need to qualify for a credit card or conventional loan?
There is no minimum credit score requirement set to apply for; however, you are less likely to qualify for a credit card or loan when your credit score is low. Some companies will deny you if you do not meet their certain credit criteria. In order to obtain a favorable interest rate or to get qualified for a new line of credit you may wish to wait until your credit improves. Opening a secured credit card can help you quickly build your credit.
What Factors Affect My Credit Score?
Credit scores are generally affected by:
- Payment history of loans and credit cards
- Severity of late payments
- Credit utilization rate
- Total debt
- Type of account, age of account, and number of credit accounts you currently have
- If you have a public record such as tax liens, bankruptcies, or civil judgments
- New Accounts or lines of credit recently opened
Contact Us !
Should you have any questions about your credit score, need credit restoration assistance, or other financial services, please schedule an appointment today by visiting our website www.unitedcounselors.org.
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