All About Credit Scores!

One of the biggest financial responsibilities and sometimes most intimidating things in your financial life will be your credit score. It's not as complicated as you think! Here are the basics on credit:

Range- Credit scores range from about 300-850 depending on which credit reporting company you go through. The three major credit reporting companies are Equifax, Experian, and TransUnion.
 
580-below- These scores are not good to put it bluntly. People in this bracket have recent (or most likely current) delinquency and will most likely be turned down for any loan. If you do qualify and your score is in this range, you may want to put the pen down! Interest rates for any loans in these scores will most likely be ridiculously high.

580-620- These scores are getting a little better but honestly not much. People in this area generally have had some recent past due accounts. When applying for a loan, they will generally be turned down by "regular lenders" (local bank) and may have to venture in to the sub prime loan department. Having worked in this department for many years, I can now honestly say that if it isn't an emergency don't do it! These rates are typically not very good and will most likely cause more harm than good.

621-680- These scores are considered "acceptable". People that fall into this category are considered trustworthy, and usually have either no past due accounts or are new credit holders. If you fall into this category and have had credit for awhile it may be that you have a high credit card usage or too much debt. Credit scores in this area will most likely get you an approval but usually not a prime interest rate.

681-720- This is considered good credit. People with these scores will usually qualify for what ever loan they are looking for. Interest rates at this point will be acceptable but not as great as people with excellent credit scores.

721-799- Only 27% of the population has credit scores within this range. This is great credit. Customers in this category usually qualify for prime rates. They are considered trust-worthy and usually have never had a late payment.

800-+- It is estimated that only about 13% of people have scores in this range. These are customers who have never had a delinquency, and have little to no revolving debt. Customers in this bracket will get the best rates on anything and everything from mortgages to credit cards.


It is wise to check all three reports at least once a year (all will vary a little).The federal government passed a law a few years ago and you can now see all of your reports for free at http://annualcreditreport.com/ Knowing your credit history will make it easier to prevent credit fraud and also know where you stand financially. If you are in the top portion of the credit scores congratulations! Hard work pays off!  If you are in some of the bottom scores- stay tuned I will show you the steps to get your credit back on track! It is possible! :)