What is good credit score?

Good credit score is essential to ensure any favorable credit or rental conditions. Credit scores are a reflection of financial negotiations with creditors and/or creditors; Therefore, good credit score will not only ensure considerable interest rate savings, but also speed up the loan or loan approval process. On the other hand, a bad credit often leads to a higher rate for smaller loans or loans and very often to direct the loan or loan. Fico® collects and evaluates information about loans and loans from the three largest credit agents, experts, transport and Equifax and disseminates this information to banks, creditors and credit card companies. Fico® also provides credit scores to individual consumers who want to track their credit information either as a normal financial Maintenance tool or to determine whether they have a good credit score when applying for credit or loan. Fico credit score will range from low 300 to 850. Lower number will mean a very bad Centralours and higher risk to creditors and creditors, while a higher number represents essentially perfect credit. Credit scores above 600 are generally considered to be worthy of reasonably favorable credit conditions. A score over 720 is considered a good credit score, while credit rating 600 or below is considered bad.

Fico® evaluation is based on five basic criteria. (1) Payment history represents 35% of the total score. (2) The amount of money owed is calculated as 30%. (3) The length of credit history is calculated as 15% of the total. (4) New credit (10%) and (5) Credit types (10%) complete the total credit score.

creditors constantly evaluate the score in deciding to change interest rates or credit card limits for specific clients or offer favorable rates to a potential client with a good credit score. Potential debtors can increase the wrong creditScore by opening credit history and timely re -payment of debt. Conversely, debtors can reduce a good credit score if they lack planned payments or default loan. A good credit score can also determine a more favorable premium for items such as car insurance and home owners.