Factors that affect credit scores
- Timeliness of payments
- The number of open accounts
- High debts to assets ratio
- The length of credit history and other events like “charge-off” or bankruptcies
- Points can also be deducted each time one’s credit score/report is requested
Credit Scores and what they mean
- 740+ Excellent credit score; should qualify for best interest rate and loan terms.
- 680-739 – Good credit score; should not be a problem getting a loan with a good interest rate.
- 620-679 – Average credit score; may qualify for a loan but not at the best interest rate.
- 560-619 – Poor credit score; will have a tough time getting a loan or a credit card.
- 559 or below – Bad credit score; doubtful you will qualify for a loan or a credit card.