Credit score is nothing but just a number that determines the history report of your activities. To speak things clearly, it is a quantity that determines whether you have any better chances of obtaining a loan from any creditor or not. Better the activity report the better you have the chances of qualifying for a loan you deserve.
A credit score, if offered with a number, generally ranging from 300 to 850. It can occupy any number in this range and based on this number, the loan issuing companies evaluate your potential and judge you accordingly. It is considered average if it occupies a number above 600. And as already said, better the number better the chances of qualifying for a loan. A person with a bad history report or in other words, with lower score is considered to be generally ineligible for any loan.
There are many factors that determine the credit score and each loan issuing company might have a different strategy in evaluating the number of an individual. For example, if you have filed for bankruptcy then that would lower your FICO with great ease. Though irregular payment installments might not show that much adverse affect on the FICO, they do show some significant impact on the same.
A bad credit score, on the other side, can be improved over time. If the due installments and the coming installments are paid in time, then the Bad report is likely to improve thus by improving your chances of obtaining a loan.
To get more information about Good Credit Score or Bad Credit Score, just visit our sites.
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