Whats Your Credit Score, And What Does It
Mean?
You've seen the commercial on television,
no doubt. A potential buyer has just discovered that his credit score is
619. Now the number literally haunts him as he sees it on a mans jersey,
on the side of a bus, just about everywhere!
For those who are "credit savvy," you know
exactly the significance of these three digits. For the rest of us, we
just politely nod and pretend to feel badly for this fictional character.
NOTE: You
should have a credit
score of at least 580 to be considered for a loan. If you don't KNOW
your credit score, you can find out instantly
Do you know your credit score? Now,
if you answered yes, here's an even more important question: Do you know
what your number means? For those of you who dont (and those who dont want
to admit out loud that you dont) heres a quick summary of credit scores
and what this means in practical terms.
Do you need to consolidate all your loans?
Use
the FREE 2-minute DebtWizard to see how much you could save every month.
850 to 700
The best your credit score could be
is 850 - it doesnt get any better than this. If your credit is this
good, you have no worries when it comes to obtaining a loan - and youll
get it an interest rate that will keep you smiling for the length of the
loan. In fact, scores of 720 or more may, indeed, qualify you for certain
discounts or special offers. Congratulations, your mailbox is no doubt
filled to over brimming with lenders just begging you to borrow money from
them.
699 to 680
While you're not at the top of the credit
heap, youre still in the upper crust of borrowers. You can pat yourself
on your back for this achievement. You wont be offered any outstanding
deals, but no loan officer is going to laugh in your face either. If you
apply, they will approve. And your mailbox, too, is probably nicely filled
on a daily basis with loan offers.
679 to 620
Ah, were entering the Twilight Zone of
credit ratings here. Youre still in good shape, but a slip up or two -
like a layoff and a couple of late payments - could spell trouble for your
record. Youll get your loan (your interest rate might not be as low as
you would like) but, youre going to accept it, thank the nice person and
hope no layoff or dismissal from your job is imminent.
619 to 580
There it is the dreaded 619 of television
commercial fame. But surprisingly, youll still be able to get the loan
- not at a great interest rate, thats for sure. But, chances are you wont
refuse it either. A loan - with any interest rate - means a chance for
you to improve your score.
579 to 500
Ouch! Theres no other way to say it: You've
got bad credit. Apply for a loan and you may obtain one - but youll be
crying every time you make a payment, because the interest will be, well
... outrageous. With a credit score this low, you should try to repair
your credit before you apply. Credit this low is not a death sentence and
with a little work, it can be repaired.
Where to turn for credit help
Bad credit is not terminal, nor is it permanent.
There is plenty that can be done to make it better and give you a fighting
chance at getting a decent loan. Just keep in mind that your credit score
is not a reflection of your intrinsic self-worth, its only a reflection
of your most recent financial circumstances.
But, in your search to repair bad credit,
dont fall for any con artist or scam program that comes along. Never is
the phrase "knowledge is power" more applicable than here. And you can
start increasing your knowledge by clicking to the free site, www.cleaning-up-bad-credit.com.
Stop, visit and absorb the abundance of information this site contains.
It provides you with tips - many of them directly form mortgage brokers
and other lenders - on how you can quickly improve your credit score. And
were not talking small change here. If you use a few of these tips, you
can raise your score as much as 60 points in 60 days. From explaining the
most simple of credit terms for those "newbies" who find themselves overwhelmed
with all the information, to talking about the finer nuances of the credit
world for those who are already educated, cleaning-up-bad-credit.com is
one of the best tools you can use.
Moreover, www.cleaning-up-bad-credit.com
offers daily, free news articles to keep you current on the latest events
in the lending arena. No need to scan three or four different sites to
keep up with the news, because this site offers condensed, concise and,
best of all, useful information. Visit it today, and bookmark it. You are
sure to want to come back to it again and again.
Jeff Little
Loan and Credit Resources:
Loans
for Women
Business
Loans
Debt
Consolidation
Credit
Score
Article: A
Guide to Credit Scoring and Improving Your Credit Score
Article: Having
Trouble Getting A Loan? Ten Common Credit Mistakes
Article: How
Much Do You Know About Credit Scoring?
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