Your credit score can be the magic figure that will either swing you in favor of easy monthly payments or loan sharks. If you have chalked up a poor credit score for any number of reasons, what are the options ahead of you? How can you repair your credit score? Find out answers to these and more.
Understanding your credit scores
FICO score of 700 and more - Excellent credit
FICO score of 680 to 700 - Good credit
FICO score of 620 to 680 - Ok credit
FICO score of 580 to 619 - Low credit rating
Your credit score is a factor of your payment history, length of credit history, new credit accounts and types of credit in use. Credit scores less than 500 herald trouble for you. You need to have a high score, in the range of 575 and 650 for creditors to see you as a good risk for them to loan money to.
If your score is in low 500 range or even as low as 400, then you need to start taking steps to repair credit scores. If a consumer notices that his credit score is erroneous, he can tell the consumer-reporting agency of the inaccuracy. This should be accompanied by documents to support the position. This sets into motion an investigation and you are entitled to a free copy of your report.
Repair credit score
If you are seeking the services of a credit repair agency, check the guidelines from the Credit Repair Organizations Act before you enter an agreement. Ensure that you are not gypped into paying for credit repair services up front or dragged into a legal dispute that all your credit score information is erroneous. Never agree to get a new credit identity, as it is a federal and state felony.
These are the factors considered while calculating your credit score rating: