WHAT FOR AND WHY IS CREDIT SCORING IMPORTANT?
A credit score is a figure of three numbers that qualifies people individually and determines their level of risk.
Financial institutions use it to check how reliable a person is and to make a decision when they want to grant any type of loan. This score can affect your financing options, because it determines how eligible you are to be granted a credit and also indicates the terms and cost of the loan. Whether it is a business loan, credit card, purchase of a car, mortgage, etc.
Now that you know what a credit score is, it is also important to know that the rating companies (credit bureaus in the United States) that are responsible for this rating at a personal level are 3: Experian, Equifax and TransUnion. Each of them has different criteria to measure the credit score and not all companies or financial institutions report to all 3.
It is also important to know that not all lenders consult the credit score in all bureaus.
WHAT IS THE CREDIT SCORE RATING RANGE?
The scale ranges from 300 to 850 points, here is a breakdown of the rating scale for you:
300-620, Weak
630-680, Fair
690-740, Good
740-850, Excelente
If you want to schedule an appointment to learn more about your credit score and how to repair it click on this button.
HOW IS THE CREDIT SCORE CALCULATED?
Los factores determinantes para el cálculo del puntaje de crédito son los siguientes:
Payment history
Amount owed vs. your credit amount
Length of your credit history
Types of credit
Credit inquiries
WHAT IS A CREDIT SCORE GOOD FOR?
The credit score is very important because it can mean saving or spending thousands of dollars. It is clear that the riskier your profile is, the more expensive the financial product you are looking for is going to be, the financing amounts and terms may also vary depending on how your credit score is.
WHERE CAN I CHECK MY CREDIT SCORE?
It is important that we constantly check our credit score, you can even print your credit report once a year for free (it takes between 5 and 10 days to deliver it to you).
If you want to check it more than once a year you can buy it through multiple applications, its cost varies between 30 and 40 dollars.
So now that you know the importance of your credit score, we invite you to consult it on any of the platforms such as Credit Karma, Credit Sesame or any other platform. If you already know your score and it is not at a favorable level you can schedule a call with our specialists to consult our repair service, we will help you improve your credit.
