
Understanding your credit score can be complicated. So many factors impact the amount your score rises and falls each month. Unfortunately, credit scores dictate much of what we can do when it comes to making significant financial moves. Understanding your credit score can help you better manage your borrowing power.
All credit scores have one primary goal. Contrary to popular opinion, the goal is not to frustrate borrowers, although often, the ever-changing nature of a person’s credit score may lead to that as well. The primary purpose of a credit score is to help lenders and creditors develop an opinion of how risky it may be to engage in business transactions with you. High credit scores indicate a lower risk assessment, whereas low scores may point to a higher risk for lenders. Unfortunately, there are many reasons why your credit score could suffer, some of which are not of your own doing. Raising your credit score can help you secure loans and better interest rates on debt.
A credit score is a number ranging from 300-850 that represents your creditworthiness in the eyes of lenders and creditors. Your score is based on several factors from your credit history, including total debt level, debt payment history, number of open accounts, accounts in collection, and overall debt to income ratios. Lenders and potential creditors turn to credit scores to help determine if they will extend credit or loans to applicants.
FICO scores are divided into five tiers based on overall credit range and rank. They are as follows:
As frustrating as credit may be, the ability to secure loans and other forms of credit debt is an essential part of life for many Americans. Without credit, it is virtually impossible to make large purchases such as a home or car. Your credit score also impacts your ability to obtain credit cards, rent an apartment, get reasonable auto insurance rates, purchase a new cellular phone and much, more.
Understanding where your credit score falls and the factors that contribute to your current score are essential to improving your score over time. Without solid credit, you will find it difficult to secure funding when you wish to. Monitoring your score can help you keep track of changes in your score and learn more about areas for improvement. Another way to help improve your score is to seek assistance from a professional service like Elevated Credit Repair. Contact us today if you would like to learn more about how we can help you manage and improve your credit scores.
Address- 5455 North Federal Highway, Suite O, Boca Raton, FL 33487
Email- contact@elevatedcreditservices.com
Phone- 561-210-5958