While many don’t know exactly what makes up a credit score, it can actually be very important to your ability to make purchases and take care of your future. Many people don’t know what their credit score prevents them from.
What is a Credit Score
A credit score is a rating that the three credit bureaus give consumers based on their payment histories, their credit outstanding, and their potential risk to creditors.
Scores usually range from the 500s for bad, all the way up into the 800s for excellent credit. Usually being a good risk for a bank, lending institution, or creditor will signify a higher credit score giving indication to your creditors that they are safe lending you money.
What Having a Bad Credit Score Could Be Preventing You From
With a good credit score usually you are going to be able to borrow more money from more lenders for more things. Usually your interest rates will be lower, meaning that you will have to pay less money for interest and in your payments. In addition, you may get longer terms and more favorable conditions.
However, if you have a poor credit score you could be denied funding. This could mean that you are rejected from that new car wanted to purchase. You be denied a mortgage and you could have trouble finding a place to rent. A lot of landlords will run a credit check and if you don’t have good credit you may be denied.
Solutions to Bad Credit
There are actually several companies that specialize in credit repair. This is where they take a list of your negative items, dispute them from the major credit bureaus and have them wiped from your credit history, allowing your credit score to rise.
You can also get a secured credit card will help show the bureaus that you are working on your credit and this can help you raise your credit as well.
There are many solutions to having bad credit. Fixing your credit will open up your opportunities so you might as well get started.