Some of these financial topics are sometimes difficult to understand, but at QNT we want to explain it to you in the easiest way. Basically your credit score corresponds to your financial history either by credit cards or loans that you have taken out in any financial institution; These loans generate a credit history and therefore these entities send a report to the risk centers indicating your financial behavior, whether positive or negative. The combination of your credits is analyze to calculate your credit score and corresponds to a 3-digit number that, together with your credit report, is use by lenders to decide whether or not to grant you credit.
Here you will ask yourself, how do I know if my credit score is good or bad? Well, we will tell you in the simplest way possible:
300 to 580 – LOW
People who fall into this range are described as “poor” credit, this makes it difficult for you to apply for most loans at a financial institution; Also, if they grant you a loan, it is very likely that these borrowers will give you unfavorable rates and you will have to meet higher requirements.
580 to 669 – AVERAGE
People who fall into this range are describe as having “average” credit. This can be interpret as clients who once had flaws in their credit history. But did not have major delinquencies. Lenders will likely approve credit applicants in this range. But if you’re here, borrowers are unlikely to give you competitive interest rates.
670 to 739 – GOOD
People who are in this range are describe as having “Good” credit, this means that they continue to maintain competitive interest rates, possibly you will not see the ideal rates, which are only grant to the highest scores.
740 to 799 – VERY GOOD
People who fall into this range are describe as having “Very Good” credit, this indicates to lenders that you are above average consumers, have a credit history that demonstrates reliable credit behavior and for these reasons You will probably qualify for almost any type of credit with little difficulty in addition to receiving favorable interest rates.
800 to 850 – EXCELLENT
People who are located in this range are described as “Excellent” credit; this indicates to the entities that you have the highest rank, which means that you present the lowest credit risk. Not only does this credit score almost guarantee acceptance. When applying for most types of credit, it also ensures the best interest rates and lowest fees.
What affects my credits score the most?
Payment history is the most important point in determining your credit score. As it is an indicator of how well you manage your finances, including late payments. These behaviors show how long you have been managing your accounts. And when the last payments on your financial obligations were made.
Does my personal information affect my credit score?
NO, your score is an indicator of how you manage your financial assets, so aspects such as age, ethnicity, religion, marital status, etc. They are not take into account in this calculation; It should be note that your employer information, your salary and occupation are also not take into account for this analysis.
We hope that this article has been helpful to understand a little better. What the credit score is about and that you take actions to constantly improve it. If the article interested you or you have any questions that we may not have resolved. Leave us a comment and we will gladly analyze to give you an answer.