It pays to know your credit score, it's your financial footprint. Show
Why your credit score mattersThere are real benefits to staying on top of your credit score. Either way, it pays to know your credit score. It’s your financial footprint – the way companies decide how financially reliable you are. A higher credit score means lenders see you as lower risk. Checking your credit score is free – and it’s your rightYou have the legal right to check your credit report for free. What’s more, it could be done in a few quick steps. That way, if any mistakes have crept into your credit file, you can catch them and have them removed. Here’s how to check your credit score. How does your credit score compare? . Most of the top credit rating agencies have five categories for credit scores: excellent, good, fair, poor and very poor. Each credit rating agency (CRA) uses a different numerical scale to determine your credit score – which means each CRA will give you a different credit score. However, you’ll probably fall into one category with all the agencies, since they all base their rating on your financial history. So if one agency gives you a ‘good’ score, the others probably will as well. Here’s what a ‘good’ or ‘fair’ credit score looks like from each of the UK’s three largest CRAs:
A fair, good or excellent Experian Credit Score Experian is the largest CRA in the UK. Their scores range from 0-999. A credit score of 721-880 is considered fair. A score of 881-960 is considered good. A score of 961-999 is considered excellent (reference: https://www.experian.co.uk/consumer/guides/good-credit-score.html). A fair, good or excellent TransUnion Credit Score TransUnion (formerly known as Callcredit) is the UK’s second largest CRA, and has scores ranging from 0-710. A credit score of 566-603 is considered fair. A credit score of 604-627 is good. A score of 628-710 is considered excellent (reference: https://www.finder.com/uk/transunion). A fair, good or excellent Equifax Credit Score Equifax scores range from 0-700. 380-419 is considered a fair score. A score of 420-465 is considered good. A score of 466-700 is considered excellent (reference: https://www.finder.com/uk/equifax). What a fair, good or excellent credit score means for youThe better your credit score, the more choices you’ll have when it comes to applying for a loan or credit card. That’s the bottom line. If you have a fair credit score and are approved for a credit card, you may be offered a slightly higher interest rate. Your initial credit limit may also be on the lower side. But if you make your payments on time and demonstrate financial stability, you might be able to have your limit increased after 6-12 months. If you have a good credit score, your chances of being approved for loans and credit cards increases. You’re also more likely to be offered a more competitive interest rate, as well as a more generous credit limit. Finally, an excellent credit score makes borrowing money and getting credit cards much easier. It’s also more likely to get you the best available interest rates and generous credit limits. How your credit score is determinedJust remember that it may take some time for your credit report to be updated and those improvements to show up with a higher credit score. So the sooner you start, the sooner you’ll see a change. And the first step to improving your score is understanding how it’s determined. Here are some of the factors that can harm your credit score:
If you want to dig a little deeper into how your credit score is set, 'The truth about your credit rating' will provide even more insights. No matter how good or bad your credit score is, there’s often things you can do right now to improve your credit rating. Some are free and require just a few steps, like putting yourself on the electoral roll. Others will take a bit longer, like changing the way you manage your bills. What's next?Now that you know what your credit score means, here are some handy tips for improving it. How to improve your credit score Is 661 a good credit score?A FICO® Score of 661 places you within a population of consumers whose credit may be seen as Fair. Your 661 FICO® Score is lower than the average U.S. credit score. Statistically speaking, 28% of consumers with credit scores in the Fair range are likely to become seriously delinquent in the future.
Which of the 3 credit scores is usually the highest?For both the VantageScore and base FICO® score models, the lowest score is 300 and the highest credit score is 850. But even if you have pretty good credit habits, don't be surprised if you check your scores and find that you're below 850. Perfect credit scores can seem to be inexplicably out of reach.
Is 600 a good credit score?Your score falls within the range of scores, from 580 to 669, considered Fair. A 600 FICO® Score is below the average credit score. Some lenders see consumers with scores in the Fair range as having unfavorable credit, and may decline their credit applications.
|
What is a good credit report number
Related Posts
Copyright © 2024 ketiadaan Inc.
