It’s important to know how your credit scale can affect you when applying for loans, buying a car, or a home. Money may be needed for other reasons and being able to access it at the right time is vital. The credit scale is an estimation of how credit worthy an individual or business is. It’s based upon detailed analysis of overall personal and financial credit history. The higher the score the more credit worthy. And lenders become very willing to make a loan, extend credit or advance money. Lower scores will mean loan denials or loans granted at much higher interest rates. A person with a low credit scale and score is considered a riskier bet because they may not repay the debt. There are a couple of things that you need to know if planning to apply for any type of credit. First, it’s a good idea for everyone to know what their credit score is, and second, how that score is tallied into the credit scale.
The credit score scale is classified as being within a good range or bad range. The Fair Issac Corporation (FICO) classifies this scale between the numbers of 300 and 850. A credit score of 850 is of course considered exceptional, but you do’;t need a score that high to secure a loan. All lenders will take a good look at a person’s credit scale. Some may consider a scale between 500 to 600 good enough to be credit worthy. Some others may refuse credit at this range because it is lower than 600. Of course when the range is high, anyone can walk into a lender’s office with confidence. If the credit scale numbers are lower, steps can be taking to increase your credit score before applying for new accounts.