How to understand and improve your credit score?
July 5, 2019
Lenders consider your credit score as the most important factor when reviewing your loan application. This news will certainly disappoint you if you have a bad credit rating. However, there are different loan options that are ideal for people with less than perfect credit.
What does your credit score mean?
First, the different credit scores are evaluated by a three-digit number. The higher the number, the better your credit score. For example, a score of 780 or more will allow you to claim the best cards. In addition, with sufficient income, you will easily get a bank loan or a mortgage.
While we estimate a credit score of 720 as “very good” it will not allow you to get the best credit cards with rewards. However, you will generally be approved for loan applications. A score greater than 680 remains a “good” score, but an “average” score greater than 620 gives you the opportunity to obtain standard credit cards, even if you have difficulty securing larger loans or cards. credit.
At the bottom of 620, you may need to look for alternative loans and other forms of credit.
Score at 620 or less
Your score below 620 is called “fair” or “poor”. You can still get some loans, but the best would be to take some simple steps to improve your credit score until it reaches the 700s.
In the first place, if you need a lot of money quickly why not ask for a personal loan online? You will find it ideal because even with average credit, just or poor, the lender does not look at your credit score. In fact, he looks at your bank account as well as your latest paychecks. This means that as long as you have a job, you can apply for a personal loan online.
The secured credit card seems another interesting solution. It works like a simple credit card. The company responsible for the card will report regularly to the various credit bureaus responsible for the credit score. This means that your credit rating will increase if you pay your card balance on time. You should also know that a security deposit for a secured card will be required as opposed to a regular card. This money will be used as insurance in case you can not pay your monthly balance.
When your credit score becomes “good”, you can apply for a regular credit card. It will not offer rewards, but you will have gone up a notch.
Your credit score exceeds 680
You could apply for a personal loan at the bank. Even then, personal loans online could be a better option. Banks often ask to borrow a larger minimum amount and their application process takes days if not weeks. As for the online lenders, they complete the application within a few hours and you can ask for a very small amount.