Edge of Bankruptcy

Submit Enquiry




Enquiry Type


Enter Code:

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 websites online 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.


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.


About The Author

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.comThis article is free for republishing
Source: http://www.articlealley.com/article_6976_19.html

Don't Miss...
  1. Commercial Property Loans
  2. How to Purchase Underperforming Properties with Construction Loans
  3. How I Raised My Credit Score 40 Points in 24hrs.
  4. No Denial Payday Loans - Hassle Free And Quick Loans For All
  5. Debt Consolidation Loans - A Step Towards Hassle Free Life
  6. Home Equity Loans
  7. Everything You Should Know About Secured Loans
  8. Bad Credit used Car Loans For Poor Credit History People - No credit check required
  9. Crisis? What Mortgage Crisis?
  10. Short Term Loans – Easy Loan without Hassle
  11. Small Loans without Credit Check: Loan Without Hassle
  12. Take Hassle Free Finance Through Woman Business Loans
  13. Five General Financial Habits That Can Raise Your Credit Score
  14. Small Loans without Credit Check: Loan Without Hassle
  15. Online Auto Loans No Credit Check – Your Dream Drive
  16. The Case for Self Certification Loans
  17. Immediate Bad Credit Payday Loans: Make your life hassle free
  18. Understanding The Factors That Create Your Credit Score
  19. Mortgage Brokers Take The Hassle Out of Applying
  20. Bad Credit Cash Loans: Take Out The Hassle Of Urgency
  21. Fast Loans – Meet Your Expenses Without Delay
  22. Credit Repair for Credit Scores
  23. Bad Credit Personal Loans: Financial Help Without Hassle
  24. Cash Loans-Do Not Hassle on Insufficient Funds
  25. Hassle Free Financial Assistance - Bad Credit Used Auto Loans
  26. Low Cost Car Loans buying a car made easy
  27. Secured Loans: The solution for those with Less than Perfect Credit
  28. Online Payday Loans UK: Loan Processing Gets A Click Game
  29. Low Rate Unsecured Loans: your Way to Hassle Free Loans Cheaply
  30. Drive Your Dream With Online Car Loans
  1. Bad Credit Home Loan - Apply Online And Keep Your Credit Score As High As Possible
  2. Improve You Credit Scores: The Easy Way
  3. Need To Refinance Your Home Mortgage… Learn How to Eliminate a Bad Credit Score…
  4. Poor Credit Score? Find the Best Bad Credit Card
  5. What's Your Credit Score? Not Knowing Could Cost You
  6. How To Get A Handle On Your Credit Score
  7. Bad Credit Auto Loans – Car Loans Even With A Poor Credit Score!
  8. Bankruptcy and Raising Your Credit Score
  9. Facts for People with Bad Credit Score
  10. Credit Score Improves by Paying on Time

© Edge of Bankruptcy 2008. All Rights Reserved