What is a good credit score? This is one question you must be asking yourself as the recession continues to bite. Most people don’t really understand credit scores, but they know that it is an important number. The number can either be good or bad and depending on the situation it can determine whether or not you can get a loan.
For instance, if you have multiple accounts with different companies that bill you, your credit scores will be lower than someone who has just one account. That does not mean that you cannot have accounts with these companies. What it does mean is that you will be viewed as a risk. A risk to those lenders who want to give out loans. What is a good credit score to someone may not be what a lender is looking for in someone else. That is why it is very important to look at your credit scores and what you have reported.
If you have less than ideal credit scores, you are going to have to do some work to improve them. There are many companies available online that can help you improve your credit scores. It is important that you work on this because this can affect your ability to get a loan. You will find that most lenders will want to see what you have reported to the three credit bureaus that are available online.
What is a good credit score may be a low FICO score and a high credit age. A low FICO score may be caused by missed payments or even debt that is older than seven years old. In other words, if you have a late payment or two on your credit card, it may lower your score. This is why many financial lenders will deny you loans unless you can prove that you have been paying all of your bills on time.
The same thing can be said for the credit scores with high ages. You will need to prove that you are in good health to qualify for these loans. However, there are still some lenders out there that do lend to people who have average scores. These lenders will use a variety of factors in their scoring ranges before they determine whether or not they will approve you.
One of the most important factors that are used to determine a good score is the amount of debt that you have compared to your income. What is a good credit score for someone who has money problems is a higher score because they would probably be rejected for a loan. However, it does not mean that someone with no debt or bad debt will not qualify. All you need to do is prove that you are earning a steady income and that you have enough money to pay the monthly payments.
This post was written by Kristian D’An, owner of Lux Credit LLC and CCA board certified credit repair specialist. Lux Credit offers credit repair Companies for those looking to improve their credit!