credit score chart

Credit score chart is basically a type of credit report that shows your recent credit history.  Credit score chart is also called FICO score with some other useful information. According to the FICO score, the credit score is basically any number from 300 to 850, which is depends on the history of your credit. If we talk about in simple words, credit score chart is an expression based on the statistical analysis of a person’s credit files and it is used to symbolize the credit worthiness of that person.

Mostly, credit score charts are used by the financial institutions, credit companies and banks to estimate the risk in case of lending money to customers and to lessen losses due to bad money owing. Credit scores are also used to decide whether the applicants are capable for loans. If they are qualified, it also helps to decide the interest rates and credit limits they should get.

While dealing with the credit score chart there are two major factors that we need to consider. The first important fact is to find out the credit score of a person and how these factors are selected. Secondly, we need to know how to read and understand a credit report. Firstly thirty-five percent of the score depends on the record of timely payment of loan. Then thirty percent of score is calculated based on others debts, unpaid bills and total outstanding balance.

Fifteen percent of the rest is dependent on how long you are using the credit system and the history of that time. Ten percent depends on the types of credit and the number of credit account. Ten percent depends on new accounts and types of account recently opened. The score you achieve in FICO credit score chart classifies you in different groups and provides you different types of facilities.

If your credit is between 700 to 850 it would be called an excellent score. For this score you will be eligible for any kind of loan with lowest interest rate. For this reason you will be under fair repayment terms. If the score is between 680 to 699 you will be easily approved for any kind of loan from your lender. Score between 620 and 679 are considered as the reasonable score. The people under this category will be approved for any kind of loan but they will not be able to get the best interest rates. Scores between 550 and 680 will not allow you to have loan of any amount. Some lenders may agree to give you loan but you have to pay it back with highest rate of interest.

The people who have scores under 550 can hardly have any loan as the lenders feel insecure in the case of repayment. They must concern with credit repair before taking any kind of loan. The credit score chart is designed in such way that one can easily have an idea of one’s recent financial condition in case of loan, debt bill payment etc.

comments