niedziela, 27 maja 2012

Orientation on credit score ranges

People usually apply for loans and mortgages when they are purchasing a home or a new car. The credit rating of the person will be one of the most important deciding factors used by banks and financial institutions where the loan or mortgage application has been submitted. 

This credit rating or credit score is an index of the credit worthiness of the person which will help banks and financial institutions to decide whether the application for a loan or mortgage needs to be granted. The credit score of the person will provide the lender with assurance regarding the repayment capacity of the prospective loan or mortgage customer. 

An optimum credit score will have to be maintained for a given time period in order to get the application for a loan or mortgage approved.

credit scores range

A person who intends to apply for a loan or mortgage should not only be aware of his own credit score but should also have awareness about the required credit score range. 

This will also help the person to determine whether his own credit score comes within the required credit score range that will help him to get his loan approved. The usual positive credit score range lies between 300 and 850.

The normal credit score of any person will lie within the range of 300 and 850. The credit rating of a prospective loan applicant should come within the given range so that the application will be approved. The exact position of the applicant within the given range will determine the rate of interest on the loan for which the application has been submitted apart from the monthly payments which need to be made as well as the period of repayment. 

There are many people who do not have any kind of knowledge with regard to their credit scores.

People who know their credit scores are not aware of the fact that it is possible to get these scores changed in order to improve the probability of the loan application being approved. Many different measures can be adopted in order to improve credit scores. People should make sure that they check up their credit reports on a regular basis in order to stay updated on their credit status. I check my credit score free from Experian. In case their credit rating has plummeted, appropriate measures can be taken to improve it. 

One of the main reasons for a decrease in the credit score will be the non-payment of bills. The most important measure which can be adopted to improve the credit score will be the payment of all the bills and the credit card bills should be given primary priority on this list. 

The payment of these bills can bring about a 30% improvement in the credit score. The credit score of a person is a public record which is usually available online for easy reference. People can also engage the services of a credit monitoring agency which will compute their credit scores and also keep it updated on a regular basis. Details of all the financial transactions of the person can be found in the credit report of every person.