A good credit score varies with the reference you choose for information.
According to some websites, 720 is a good credit score, while some say 750 or above is ideal if you want to have a loan of finance or automobiles from lenders. Borrower with 750 credit score is given preference in case of loans.
Many moons ago, 620 or higher credit scores were enough for customers to get loan. Now, this score is considered as blemish on customer’s credit report and he has to face many troubles to get finance from lenders.
But what is the reason behind this situation? Why has it become so difficult to get a good credit score?
Past recession is the main reasons for such crisis. Conventional lenders are highly condemned for approving loans of unreliable customers. Lenders made a great mistake by lending money to people with poor credit reports. As a result, these lenders witnessed a huge economic disaster since many loans were not paid back, thanks to fraud borrowers with low credit scores. According to government and economic experts, this situation, caused by lenders’ careless attitude, made the recession unbearable.
Keeping these facts in mind, lenders have become more conscious and careful to avoid any more blunders. Today, only top borrowers with good credit scores are eligible for loan. Lenders have made their eligibility criteria, which is required while applying for loan, rigorous and demanding. Hence, credit score requirements are also update. Borrowers with 750 or higher credit scores can easily get a loan lower interest rates. On the other hand, people with 700 or lower credit score will surely have to deal with many difficulties to get loan at fair rates from lenders.
So, you have to achieve credit score of at least 750 to get a loan at cheap rates.
A good credit score is not impossible target, you can get it with necessary precautions. Moreover, if you have high debt level or due payments, you can actually overcome them by just following deadlines of payments. You must pay your bills monthly along with credit card payments.
If you have any idle credit card account, then you must close it to balance your credit score.
Following these instructions, you can easily achieve the moving target of a good credit score. However, you must be patient to see progress. Paying bills regularly won’t reflect immediately on your credit report. Enhancing your credit scores with sufficient increase may take months or years too.
On the whole, you can confidently apply for your loan, when you will hit the good credit score. So, pull your socks up for good credit score.