Why Your Credit Score is Important
Your credit score can either haunt you or reward you. It all depends on how you handle your credit and payment activities. Your credit score determines what interest rates you will pay and if you are even approved for a loan or a credit card at all. In addition, your credit score can play a factor in renting your next apartment or getting hired from a potential employer.
Your credit score is compiled from the information on your credit report. The performance of your credit activity is rated on a numerical scale from 350-850. This number is your credit score. The higher your credit score, the better. Late payments, delinquent accounts and maxed out credit limits are all things that can lower your score. Below is a general guideline to determine what your credit score means in terms of getting approved for a loan or receiving credit and what type of interest rates you can expect to pay.
750-850: Is considered to be an excellent credit score. You can expect approval and should receive a great interest rate.
680-749: Is considered to be a good credit score. Generally you should be approved and given a favorable interest rate. 620-679: Is considered to be a middle of the road score. You will more than likely be approved but you may have to pay a higher interest rate.
550-619: Is considered to be a low credit score. You can find lenders who will approve people with poor credit scores but they will probably charge very high interest rates and fees.
300-549: Is considered to be a very bad score. It will be a challenge to find a lender that will offer you credit at all.
Do you know what your credit score is? Having this information can save you the time and hassle of trying to get approved for loans that you may not even be eligible for. There are many reputable companies like http://www.credit-report-credit-score.com that can provide you with your credit score for free.
If your credit score is lower than you need it to be, there are many ways to get your score up. It will take some time and diligence but it can happen. There are credit repair companies available to help get your credit situation back into shape. But there are also actions you can take on your own to improve your credit score.
First, you have to be sure to make all of your future payments on time. Late payments can be very detrimental to your credit score. Secondly, you should try to stop charging if you have a lot of credit card debt. If you do have a lot of credit card debt, you should try to pay the balances down as much as possible. Do not attempt to obtain new credit and do not fill out excessive amounts of loan applications. New accounts and numerous credit application inquires can be a hazard to your score.
If you currently have a good credit score, then make sure you keep it! If you are beginning to have financial trouble and your monthly payments are becoming a challenge, try at all costs to avoid defaulting on any of your loans, especially your mortgage. Taking out a debt consolidation loan is an option that can help ease your monthly payment obligations and keep you from ruining your credit score.
With all of this said, you can see why your credit score is one very important little number.
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Note: This article may be freely reproduced as long as the authors bio paragraph at the bottom of this article is included, the article is published "as is" (unedited) and all URL's are made active hyperlinks with no syntax changes.
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This article was written by Beth Pardue who has over 10 years of experience in the financial industry assisting clients with assorted financial needs. To learn more about credit reports or to get a free credit report online please visit: http://www.credit-report-credit-score.com
MORE RESOURCES:
 AFP | French banks stung by credit-crisis losses MarketWatch - By Simon Kennedy, MarketWatch LONDON (MarketWatch) -- France's third- and fourth-largest banks reported slumping results from the credit crunch on Thursday, ... Credit Crisis Pummels French banks still suffering from credit crisis Natixis Reports Second-Quarter Loss on Writedowns (Update4) |
CreditCards.com: Weekly Credit Card Rate Report MarketWatch - AUSTIN, Texas, Aug 28, 2008 (BUSINESS WIRE) -- Annual percentage rates for new credit card offers dipped lower this week, according to the CreditCards.com ... |
State Employees' Credit Union Extends Long-Term Agreement with Visa MarketWatch - As part of the agreement, SECU, one of the largest credit unions in the United States, will continue to offer its members the full range of Visa consumer ... |
Small Businesses Dissatisfied With Credit Card Processors MarketWatch - CHICAGO, IL, Aug 28, 2008 (MARKET WIRE via COMTEX) -- A new survey shows small businesses are dissatisfied with their credit card processing arrangements. ... |
Sallie Mae says credit facilities have shrunk Reuters - By Dan Wilchins NEW YORK, Aug 28 (Reuters) - Sallie Mae said credit facilities that help fund its loans have shrunk, in a development that could reduce the ... Sallie Mae Lowers Amount for Private Loans, May Face Downgrade |
European Stocks Climb on US Growth; CRH, Credit Agricole Gain Bloomberg - Credit Agricole, France's third-biggest bank, jumped 8.9 percent. The Dow Jones Stoxx 600 Index added 1.4 percent to 287.21, trimming this year's decline to ... European stocks edge higher, helped by Agricole and MBIA European Stocks Climb on US Growth; CRH, Credit Agricole Gain Credit Agricole |
UPDATE 1-Credit Suisse cuts Coca-Cola to neutral Reuters - Credit Suisse analysts also said its economists were expecting a bottoming out and recovery of the dollar for 2009 and beyond, adding that this may have a ... Coca-Cola downgraded to neutral at Credit Suisse Coca-Cola (KO) Lower Following Analyst Downgrade The Last Straw for Coke |
CNG Appeals Order To Issue A Credit To Ratepayers Hartford Courant, United States - By LYNN DOAN | Courant Staff Writer Connecticut Natural Gas is appealing a state decision requiring it to credit customers up to $9.25 on their monthly ... |
Hanmi Financial appoints chief credit officer Bizjournals.com, NC - Hanmi Financial Corp. has appointed John Park executive vice president and chief credit officer, the company said Wednesday. Park was most recently senior ... |
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