Credit score chart is the things that you should know before applying any proposal of credit or loans. Because your value or score in it will affect the bank trust. Even you are a student, new workers or the professional ones, you need to make the score as excellent as possible.
How Important Knowing Credit Score Chart?
Nowadays, debt, loans, and credit are being a part which can not be separated from the people daily’s life. People become largely attached to it. They need loans or credit to pay some urgent or necessary things, such as college tuition, pay healthcare, and making new business. That is why the score of credit chart should be maintained well. But we do that? Let’s find the answers below.
1. Chart of Credit Score Introduction
Credit score chart is a payment history of your debts and credits which measured in some ranged score. This chart is also known as FICO, which are the abbreviation of Fair Issac Company, the founder of this method. The company has made some component to count the credit score, there are; 35% for payment history, 30% for your current debts and credits, 15% is for your length of credit history, 10% for types of debts, and another 10% for new debts which you take.
2. Credit Score Range
The higher number of your credit score will make your purchasing or loans proposal accepted easily. So it is important to know where is your category of credit score. The FICO has separated the range of score into 5 categories, there are; 300 to 579 for a very poor category, 580-669 for the fair category, 670-739 for good category, 740-799 for the very good category, 800-850 for the exceptional category, and the excellent category which ranges from 800-850 points.
3. Why We Should Maintain Good Credit Scores?
Since both debts and credits are the things which can’t be separated from daily life, we should maintain the credit score are always in the good category. This score chart will help the lenders or bank to define how are your trustworthiness and creditworthiness. You also should maintain it to ensure you have a better opportunity for employment, insurances rate, buy a house, and the approval of the loan.
4. Tips For Improving Your Credit Scores
Now you comprehend the benefit of maintaining the good credit score. But, do you know to do that? It is very easy. The first tips from us are, you can start by paying all of the bills punctually. Then the second tips, you should make sure to use credit cards in your daily purchases. It is important to save your purchasing history and increase the scores. Then the last one, ensure your credit are set in the lowest limit, so you won’t be doubt about the bills.
That is all about the information about the credit score chart from us. hope all the information will be beneficial for you. Don’t forget to apply all the tips we have mentioned, so you can easily get the loans and purchasing approval.