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7000 Peters Creek Rd., Roanoke, Virginia
1-866-260-5994 |
CCCS of Southwest Virginia |
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Credit Scoring System |
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I recently received my credit score and it was 638.Is this score
considered good enough to go out and get a new car loan.Thank
you.
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Unfortunately, the answer
isn’t that simple. Different creditors use different criteria when making
lending decisions. Also, credit bureau scores aren’t the only scores a creditor
may use. Some lending intuitions use their own scores that include your credit
bureau score along with other information about you.
I can tell you that
the average credit score is 750. Making an effort to improve your score by using
credit responsibly will definitely help you obtain credit at reasonable
rates.
Good luck with that auto loan,
Susan
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Recently I applied for a Visa credit card. I was turned down
because they said a quick check of my credit revealed a score of 609 and 650 is
required to get a card. Since these numbers don't mean anything to me, I am
wondering, what is the range of numbers and what is good and what is bad. Thank
you.
Sandy
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Sandy,
All
creditors have different criteria for what they consider a “good” or “bad”
credit risk. The numbers you are referring to are probably from the Fair Isaacs
(FICO) scoring system. Your credit score is calculated by a mathematical
equation that evaluates many types of information that are on your credit report
at that agency. By comparing this information to the patterns in hundreds of
thousands of past credit reports, the score identifies your level of future
credit risk. Scores can range from 300 to 900.
Generally, the higher
your score, the more likely you are to obtain credit at desirable terms. Since
your FICO score changes monthly as new information is added, you can start
working on improving your score today by using credit wisely! In the meantime,
you should know that just because one lender turned you down for credit, doesn’t
mean another would. It is important to shop around.
For more information
about FICO scores, visit www.myfico.com.
Susan
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Within the past year my wife and I have manage to pay off most of
our debt. I have clear paid all of my old accounts that were in collection or
charged-off. We are trying to reestablish ourselves. We would like to purchase a
home soon but, we are not sure if we can get a mortgage without waiting the 2 to
3 years for our credit to get better. What can we do to improve our credit
scores to help buy a home at a resonable intrest rate. We've been told our score
is about 650 and we need to be at 750 plus to get a good rate. Can you please
help?
In Need of help, David
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Dear David,
Your
credit score changes each and every month. As a rule, negative information will
remain on your credit report for up to seven years. On the bright side, as you
continue to use credit wisely and the past derogatory information ages, your
score should improve.
Be careful that you don’t have a lender “check”
your score too often. The activity may appear as inquiries on your credit
report. Too many inquiries may actually hurt your changes of obtaining a
mortgage. You can check your score yourself by visiting www.myfico.com.
Good luck in your quest for the American Dream,
Susan
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CCCS, A Division of Money Management International
Regional Headquarters - 7000 Peters Creek Rd., Roanoke, Virginia
Corporate Address - 9009 West Loop South, Seventh Floor, Houston, TX 77096 |
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