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Good Credit Score: The score that matters

By George Hauser
Published: Sunday, September 20th, 2009

Numbers govern our daily life. On the day you were born, people labeled you as the first-born or the 5th in a brood of six. While you were growing, you studied math and maybe now numbers are viewed upon in another context. As you apply for a loan or get a job, a 3-digit number could make or break the seemingly daily occurrence in our life, thus the need for a credit score advice. The score is your credit score which as developed by Fair Isaac and Company that’s why it is also called your FICO score.

Credit Scores ranges between 350-850 and gives information on whether you are a good payer or not. These evaluation can be explained by a reliable credit score advice and will tell that it is based on a complex mathematical computation that includes variables such as your payment history including non-payment, credit inquiries, kinds of credit accounts used, and your over-all credit history to name a few. These are acquired through creditors who disclose the above mentioned information to the credit bureaus. The 3 major credit bureaus also have different systems of identifying your credit score but all adhere to the FICO-model.

Generally, a good credit score is a high score. From a credit score advice, a credit score from 725 and above, the better will it be in relation to your financial transactions. This range is the good credit score range. How does a good credit score help in making your transactions smooth-flowing and make your applications approved almost all the time? A good credit score is a good indicator of how good a payer you are. This in turn would become some kind of assurance for the lenders, employers and landlords. They will classify you as a low risk client. A good credit score could get that car loan you have applied for without extra fuss. You could loan without getting the high interest rate and get even better packages for products and services.

A little bit lower like credit scores between 580 -725 would still be okay. But still the assurance you should have exuded if you present a higher credit score are starting to waiver. This is the start of gradual increase in interest loans and a little difficulty in getting a loan or a job. This is the start of a bad credit score, thus the immediate need for a credit score advice.

A credit score lower than 580 is labeled as a bad credit score. This is where it gets bad. When you reach the 500 benchmark, you’ll really feel how bad it is. The hike of interest rates due to this bad credit score becomes a burden which sometimes becomes a hindrance in choosing an affordable arrangement you could afford. The higher the interest, the higher the risk you are to lenders and financial institutions. Low scores are bad credit scores. Loans become almost as hard to obtain as getting that perfect job. You should expect getting a negative response whenever you inquire from a credit company.

Know that you know what score falls as a good score and what falls as a bad credit score, start being aware of your credit scores as evaluated from your credit report through a credit score advice. Knowing what your score is, whether it be bad credit score or good would still help you. This is because being knowledgeable on where your score falls will either propel you to work your way up, stay where you are if you already have a good score and strive to aim higher.

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