What Is A Credit Card Scale? With all the attention on your credit score and how it affects your ability to obtain credit is important to have some understanding about the credit scale that has been used to determine your score.
The major credit reporting agencies all use a scale referred to as the FICO scale.
This rating determines your overall risk and is based on credit scales of 300 to 850.
Trying to figure out what all this means will be important.
For those that have a score of above 700, you will be considered a very low risk and will qualify for the best interest rates and terms for loans and credit cards.
Those that have a score between 680 and 699 are considered to have good credit.
The score of 622 679 means you have relatively good credit.
However, you may not always get the best interest rates.
Now we get to the numbers where people will find a little bit more difficulty in obtaining credit.
The score of five 5680 is considered poor and you will have to search to find a lender that may extend you alone offer.
The last war for the credit scales is below 550.
This means that your credit is in very bad shape and you will probably not be able to get most types of conventional loans.
Based on the credit scale, you can begin to determine which areas you will need to either fix or work to improve.
You will want to make sure that you understand the basic parts of your credit report.
There are four parts to this and it concludes inquiries from companies that you may be asking for credit, public records, which will include any bankruptcies or judgments, credit history and identifying information.
These are the areas that you can make sure that are correct, as well as begin to fix some of the sections.
This is why it is important to know your credit scale score so that you can begin to improve your credit working this.