What Is A Bad Credit Score
Is it hard for you to get an approval for a loan? Does your mortgage application get rejected every time? If the answer is YES, it means you are suffering from a bad credit score. There are many individuals that are dealing with this issue and the surprising part is, they do not even know what is a bad credit score. It is time that you learn a little more about how to get a good credit score and how to fix bad credit. Here we have everything you need to know about the credit score
The credit score number is a type of ranking you get from the bank according to your performance. Equifax credit score range is 300 – 850 and experian credit score range is 360 to 840. It come from the frequency of installments and payment of bills. Unfortunately, due to some issues, if you are unable to meet the standards of the bank, you will suffer from a bad credit score. As soon as your credit score falls below 500 it is regarded as a bad credit score. The common range of bad credit score is 300 to 499. Once you are on this list, you will not be able to enjoy the advantages that some of the banks provide to their customers such as a good rate on a loan.
What Is A Bad Credit Score And Reasons You Have It
Now that you know what is a bad credit score, it is important for you to understand the reasons behind it.
- You are late on your bills. You forget about the deadline and you paid all your bills and loan installments late.
- Due to some issues you were unable to pay the credit card bill and it was included in the bill of next month. The more you owe to the bank the lower your credit score will fall.
- You cancelled your previous credit cards that you had not been using. but despite doing nothing, your credit score will be affected by this act
What Is A Bad Credit Score And Can It Be Improved
Having a good credit score is very important if you are planning to have some extra services from the bank. However, once you fall into the category of a bad credit score it becomes hard to improve it. No need to lose hope because there are some unique ways that you can use to improve your credit score. It is better that you get a small loan from the bank or private lender. Use the money of the loan to pay back the loan on time and you will notice how rapidly your credit score will improve.
Now you know what is a bad credit score, so make sure that you pay your bills as soon as possible and you will notice that your credit score will improve. An important thing that needs your attention is that you should not let your credit score fall once it has been improved. In case the process is hard for you, get some help from a financial adviser. Considering your condition they will give you the best advice on how you can improve your bad credit score. It is better to maintain your credit score in the long run.
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