Credit Score Scale - How Is Your Credit Rating Scored?
Getting approval for any type of loan depends on your credit rating on your credit report. If you have a low credit rating, you will find it nearly impossible to get approved. Thankfully, it is possible to get a good credit rating or to improve credit rating you currently have. Most companies use just about the same rating system and if you are able to know more about how a credit score scale works, you should be better able to have a better credit score.
Your age is the first factor and needless to say, there is nothing you can do about that. Yes some folks lie, but this is NOT recommended as it will make things more difficult for you in the future if the creditor finds out. If you are between 24 to 64 years of age you will get one point. Any age bellow or above that will score you zero points.
Marriage has an effect on your credit rating, too. If you are married you have chance of adding an extra point to your score. If not, you still score zero as most creditors see you as a higher risk. Also if you have no dependents you will score zero. But if you have between one to three you will add to your points. If you have no dependents, creditors believe you can skip town and not pay off your credit or there will be no heirs to leave your debt to!
Creditors will also want to know more about your current financial situation. They will want to know where you live. Owning a home with a big fat mortgage or even without a mortgage will give you more points. How long you stay in your present or previous residence also adds more points to your score. If you move often you will score zero points. However, if you’ve stayed up to 5 years before moving, you will surely get more points for your credit score.
Other factors that will add to your points are your years at your job (the longer the better), what KIND of job, your monthly income, present debt status, previous credit history and your saving or checking account balances. Also, your repayment history that is shown on your credit report comes into play. Always make a point to check your credit report online to make sure it is accurate.
A credit score scale is usually represented by a number between 350 and 850. The lower your score the more difficult it will be to get loan. Naturally, a credit score of 800 or above should be the goal of every consumer.
