Know What a Good Credit Score Is and the Factors That Affect It

A credit rating which is above 700 is considered to be a good credit score. Nevertheless, a lot could depend on the type of credit scoring system being used. Credit reporting agencies use varied credit score assessing systems but in any case, there could be certain factors which impact credit reports directly. These may be as under:

• Total amount of credit debt
• Type and number of credit accounts
• Number of late or missed debt payments
• Public records

The 3 main credit bureaus in the country make use of different kinds of assessment methods for assessing the credit worthiness of various individuals.

What Type Of A Credit Rating Do You Need For Purchasing A Car?

While a variety of options could be available for financing new or used cars these days, the type of interest rates which are likely to be offered by lenders will depend on the exact credit status of the applicant. Accordingly, rates of interest charged for borrowers who have good credit could be much lower than those with lower of subprime credit. However, it doesn’t mean that probable applicants that have poor credit cannot qualify for affordable interest rates. There are few loan dealerships which specialize in providing low rate car financing loans for bad or no credit situations as well.

4 Important Tips That Will Help to Maintain Good Credit Score

Maintaining good credit might not be that difficult as many people presume. There are some things that need to be taken care of. Here is some vital information relating to the same which borrowers may find useful during their effort.

• Repay debts on time
  It is easier to maintain excellent credit if monthly debt bills are being paid on time. A better way to ensure this is to opt for automatic credit debt repayment facility wherein debts get repaid directly from bank’s checking account.
• Borrow less money
  When borrowing money through credit cards, make sure that you get cards with lower credit limits and repay money borrowed every month so that you don’t get yourself into bad debt situation. Creditors report all debt payments to credit bureaus.
• Assess need for credit
  Apply for credit service only if you really need it. This way you can end up saving money on unnecessary interests and avoid any inquiries on credit reports especially when one is out to secure a low rate auto loan.
• Set up emergency fund
  Save some money each month for setting up an emergency fund which can be useful in case of job loss or urgent car repairs. Alternatively, money so saved can also be used for paying down payment for financing new car.