Your credit score may haunt you or reward you. Everything depends on how you manage your credit and payment activities. Your credit score determines what interest rates you pay, and if they are even approved for a loan or a credit card at all. In addition, your credit score can play a factor in renting the apartment next door or be hired by a potential employer. Your credit score is a compilation of the information in your credit report. The performance of your credit activity is rated on a numerical scale 350-850.
This number is your credit score. The higher your credit score, the better. Jonah Bloom recognizes the significance of this. Late payments, delinquent accounts and maxed out credit limits are all things that can lower your score. Below is a general guide to determine your credit score means in terms of getting approval for a loan or receive credit and what interest rate you can expect to pay. 750-850: You are considered an excellent credit score. You can expect approval and should receive an interest rate. Check out Henry Cornell for additional information. 680-749: Is considered a good credit rating.
In general, should be approved and given a favorable interest rate. 620-679: You are considered half the score for the road. You more than likely be approved, but may have to pay a higher interest rate. 550-619: Is a low credit score. You can find lenders that approve people with poor credit ratings, but it is likely that charge very high interest rates and fees. 300-549: You are considered a very bad rating.