Your credit score is an important financial tool. It affects your ability to open credit card accounts and get loans. It can also be considered by insurers or potential employers. It is important to maintain good personal credit score because it affects many aspects of your life. Issac Corp. (FICO) credit scores just go from 300 to 850. You should know what these numbers mean that you can know if your personal credit score is good enough to make you desirable creditors, insurers and employers.
A credit score is a three digit number that gives a snapshot of your financial health to potential lenders. It can also be used by insurance companies and employers. This score is calculated based on information found in the consumer credit report.
FICO as a personal credit score is made up of various types of financial data. These include payment history consumer loans and credit cards, the original and current account balances, how long they have been open and if he has recently applied for any new credit. All these factors are used to calculate your personal credit score, but some are heavier than others. FICO says that payment history and outstanding balances are the two most important factors.
FICO credit scores range from 300 to 850. According to the financial website Money Cake, FICO credit score between 720 and 850 is considered a good personal score. If it is more than 750, which is considered excellent. Scores between 660 and 719 are fair, while money cake says anything below 659 is questionable. A personal credit score below 619 is considered poor.
When you have a good personal credit score, you will be able to obtain credit more easily. A good score helps all qualify for a car loan to a new credit card for a mortgage. If your score is good or excellent, the financial site Cake Money says you can qualify for more favorable, such as a rate lower interest conditions. A good personal credit score also makes you more attractive to insurers, since a good score is often associated with responsible lifestyle. Many employers also consider your credit score during the employee selection process.
Because your credit reports are updated frequently, your personal credit score can change quickly. If you start making late payments or do anything that can lower your credit score, it may no longer fit into the “good” range. When it falls into a lower range, the benefits associated with a good score are lost. It will take some time to recover your good credit score once it gets.