You’ve always been told to maintain a good credit score, but what does that mean? It’s important to understand credit ranking and how it affects you—as well as know where you fall within the given range. First, let us provide a definition of the term “credit score.”
Credit Score (n) – It is a 3-digit number, typically inside a range of 300 to 850, that covers your personal financial history, including details about payments you’ve made on time, late payments, missed payments, collections accounts, and other information that determines if it’s too risky to lend you money.
There are three credit agencies (Transunion, Equifax, Experian are the most common) that create reports for banks and other lenders who want your history. Within that report is your credit score, which has a significant impact on whether or not you’ll get approved. It’s that meaningful.
Credit Score Ranking Chart
The average score in America is 684. And our chart below gives you an accurate range for very poor, poor, average, good, great, and excellent. Though all credit reporting agencies set extremely similar rankings, you should find out which report your lenders are pulling more often.
Why your credit score matters …
It not only influences whether or not you’ll get approved for a loan, it will also affect the interest rates of any loans offered to you. This interest rate controls how cheap or expensive your monthly payments are. In addition to loans, a good credit score also increases the likelihood that you can get other credit offers with affordable terms (e.g. credit card).
Other finance-related matters are also swayed by your credit history. Many residential apartment complexes and private homes for rent have landlords that will run a credit check before making a decision to rent to you or not. It can even possibly influence your car insurance rates.
Your credit score ranking affects every aspect of your life.
A Resource for When Your Credit is Recovering
Cash Fast Loan offers car title loans and payday loans to help people just like you get access to the cash they need. There is no hassle. Our formula is simple: you bring in what we need, and we put cash in your hand.
If you live in the Charlotte, North Carolina, area, we encourage you to contact us for more information about our title and payday loans!