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Increase your credit score to improve your loan options
Your credit score is a bit like the standardized tests a university might use to select its next freshman class. The higher you score, the more responsible and capable you may appear. In other words, because your score mirrors your credit history, it hints at your ability to make your payments on time each month. This gives a lender confidence that its investment in you will be protected.
Your credit score is based on:
- Your history of paying on time
- How much you owe on revolving balances (including available credit used)
- The length of your credit history
- How much new credit you have
- The types of credit you use
The good news is that you're at the helm with these five factors. If you consistently pay on time, and you manage your credit responsibly, your score will be strong. If you fumble your payments every now and then, lenders will see it in your credit history. And that can hurt your loan eligibility over time.
Your credit score can range from 300 to 850. Borrowers with a 720 credit score or higher may receive the most attractive terms and rates because it's unlikely they'll default on a loan. Borrowers with a 620 score or lower may receive loans with higher interest rates (or no loans at all) because they don't have as strong a track record for repayment. Therefore, your score has a direct effect on your short- and long-term finances.
If your score is low, take heart; you can fix it, although it may take some time. You'll be successful if you're patient, and you consistently follow these tips:
- Make your payments on time.
- Lower your credit balances.
- Forget about closing accounts; it won't really change your score.
- Apply only for the credit you need.
- If you're newly divorced, avoid opening several new accounts at once.
- Use bankruptcy only as a last resort.
See what interest rates are available to you. APPLY ONLINE NOW OR CALL 1-888-342-4273.
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