Your three-digit credit score will affect how lenders receive your loan applications. It is calculated based on your consistency in establishing a record of paying your bills and debts on time. The score will play a major role in increasing or decreasing your chances of having your loan or credit card approved. When lenders look at credit to approve borrowing needs, they break down the scores into ranges.

Different Ranges of Scores

High Credit Scores

The best credit scores range from 800 to 850. People with high scores will be the most likely to receive loans with low-interest rates. They have proved themselves trustworthy to pay back any borrowed money on time.

A score between 740 and 799 is considered a high score as well and points toward a reliable payer. Also above average, 670 to 739 scores will earn low-interest rates, but may not qualify for all loans.

Low Credit Scores

A below-average score tends to range from 580 to 669 and most likely contains a couple of minor delinquencies. Those who have received bankruptcies, defaults from multiple lenders, or other major delinquencies will receive a poor credit score of 580 or below.

Everyone starts with a clean slate and has to work their way up the ladder to a decent credit score. If your score is extremely low, you most likely have not established much of a credit history. You can boost your score, however, if you practice proper spending habits and pay your debts on time.

How to Boost Your Credit

If you have a less-than-ideal credit score and need to improve it, you are not alone. If you read your credit report, you will learn which areas of your payment history have decreased your score.

Some factors are easy to improve. For example, paying your bills and payments on time will predicate your reliability for repaying loans and will look good when creditors review your report.

If you currently have any debts or unpaid credit cards, pay them off so that lenders will see you as reliable. It may take some time if you have incurred any delinquencies or bankruptcies — seven to ten years for major ones. Even inquiries will stay on your record for two years. However, if you work hard to keep up with your payments, you will increase your score and be more likely to receive loans.

Whether you are currently paying down debts or have established a poor record of credit, call City Finance. They offer a wide range of products and pride themselves on helping clients throughout McKinney and Greenville, TX, get the funding they need as quickly and easily as possible. Visit their website to apply for a personal loan or call (972) 548-0092 to speak with a representative.