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CREDIT SCORING
What Does My Credit Score Mean?
by: Don Blackhurst
Lenders are using credit scores more and more to make
decisions about who they will lend to. The main developer
of these scores is called Fair, Isaac Co (FICO), thus
these scores are often called FICO scores. Scores range
from 300-850 with a lower score indicating a higher chance
of defaulting on a loan and a higher score representing
a better chance that the lender will get paid back. The
national average score is approximately 680.
Every lender sets up its own score cutoffs but generally
speaking, you can expect to receive the following treatments
based on your score:
300-549: Extremely difficult to find any lender that will
offer you credit.
550-619: You may be able to find credit, but very high
interest rates and fees will likely apply.
620-679: You should be able to obtain credit, but you
will probably be offered a higher interest rate.
680-749: You should have no problem getting credit and
you will receive good interest rates and repayment terms.
750-850: Lenders are happy to offer you credit and provide
you with their best rates and terms.
These scores are becoming even more important to us as
consumers over time. For example, most insurance companies
also check your score when you apply for car or home insurance.
If your score is too low they might not even offer you
insurance or they may offer it to you with higher premiums.
Many companies will also check your credit when you apply
for a job. They look at how well you handle your personal
finances as an indicator of how well you will take care
of your professional responsibilities.
With so much at stake with your credit score it makes
sense to know what your score is. TrimYourDebt.com has
negotiated with the credit bureaus to offer consumers
a free look at their credit report and credit score. It
is a 30-day free trial offer, so you get the information
right up-front and you can cancel free of charge within
30-days. To check your credit score for free, visit http://www.TrimYourDebt.com/GetYourCreditScore.aspx?src=art
to find out now.
About The Author
Don Blackhurst has been working in the banking and finance
industries for over 15 years and has an MBA with an emphasis
in Finance. He is the co-founder of TrimYourDebt.com (
http://www.TrimYourDebt.com ), which provides free budgeting
tools, debt planning, and credit help. |
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