A credit score is a number that identifies the financial likelihood of a person. This three-digit number is not a mere number but holds on a lot of information. A credit score reveals your financial status, your past payment history, and your creditworthiness. When you opt for any credit from the market, your credit score is responsible to either get it approved or disapproved. Any lender before lending your fund will check your credit score as that helps them understand you as a borrower. A lot depends upon the score you possess, so a free credit score check is the right way to stay updated.
A good Credit score brings a positive image of you as a borrower and makes you liable for loans. Similarly, a bad score will make you look like an irresponsible borrower. This can affect your purchase and financial status heavily. Check what are the credit score ranges and what do they mean.
Ranges of credit score
The credit score ranges from 300- 900 respectively. Out of which there are four ranges which reveal different information about the borrower.
- 720-900: A score that ranges from 720 to 900 is taken as the best score. A score that gets your loans approved easily. You get a very low-interest rate seeing your score as it indicates a good repayment history. This range can get you any type of credit, loan, or mortgage.
- 690- 719: This score range shows a person having a good credit history. He is a responsible person when it comes to managing debt. He pays his bill on time and manages credit well. A score between these ranges can fetch you any market loan or mortgage. Keep up this good work with credit score free check online application.
- 630- 690: This scoring range depicts some mistakes in credit history. It may mean you have missed a bill payment or have a good outstanding amount. With this score range, one can get loans approved but the interest rate will be high. Keep working on your credit score if it comes in this range. Paying bills on time and making full payment can help you get a good range.
- Below 629: A score range below 629 is a risky one. This score does not indicate good financial health and credibility. The lenders in the market do not trust such a borrower. He will not be eligible for any loan or credit. This is not the right time to apply for a loan or credit. Keep paying your bills and repay your existing loans and be patient. This range indicates a bad credit score and you need to be patient as it takes time to recover. Do not opt for any credit at this time to burden yourself. Pay off your debts and wait for the right score.
Factors affecting credit score range
There are a lot of ways that help your credit score to fall under one particular range. If your score is in the range of 720-900 it is considered ad premium score whereas anything less than 629 is considered risky. What are the factors which help you to get a good premium credit score?
- Paying off your bills regularly
- Not exceeding the bill outstanding amount
- Pay the total bill amount
- Too many loans can affect your score
- Block the credit cards you don’t use
- Keep your credit card usage limited
- Check credit score regularly
Summing up, the score is a lot like your weight, keeps fluctuating. Good financial behavior can make your score a good one. It just takes one missed bill to low down your score. Be a responsible borrower and pay your bills on time.
