To know whether the credit score is good or bad, it is necessary to know about range of credit score and parameters on which credit score is given. You can also know about your credit score from websites like www.goodcredit.com.
So to start with, let’s know about credit score and on which model it is given.
The credit score system is way back to 1989. There were various models on which credit score was given like FICO model and vantage model and various others. But out of all the models, FICO model is widely accepted and most of the countries in the world accepted this model and taken to give the score on this model.
FICO model was given by Fair Isaac Corporation. They give the credit score based on the three bureaus on the basis of all the transactions whether credit or debit done by the individual.
Nowadays websites such as www.goodcredit.com also used these parameters to give the final credit score of the individual.
Parameters used by these bureaus to give the final score are as follows:
35% payment history is seen to check whether the person is not bankrupt or liar o bankrupt.
30% debt burden is analyzed to check whether the person is able to afford new credit returns or not.
15% length of credit history is observed to know about the usage and timely return of money.
10% on credit searches is enquired to tell what kind of further loans a person is applied for.
After analyzing these parameters, range have been developed which determine whether the score is good or bad.
Following are the range of credit score:
The range between 300 and 579 is considered poor and person falling in this range is need to deposit money or pay some fees in advance to get the credit.
The range between 580 and 669 is considered as quite fair and the person can get loan from few borrowers.
The range between 670 and 739 is considered good and some real good opportunities are available for this.
The range between 740 and 799 is considered very good and person get the more than average deal in it.
The range between 800 and 850 is considered as exceptionally good, and people get the top money lender and very good credit.
The range of the credit score is 300 and 850. But the good credit score is 700 and above. People who maintain the credit score above 700 are considered most valuable and trustworthy customers. They are recognized by best finance firms and get the good loan opportunities.
Nowadays, websites such as www.goodcredit.com is helping people in maintaining their credit score. They are helping people to come out of bad credit score. These websites help the people to meet with high profile financers who give good credit and great range of loans.
So if you even opt one of the website, they give you alert and let you know where your finance is going wrong.