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A credit score of above 700 is frequently considered good and may allow a borrower to receive a lower interest rate. On the other hand, those over 800 are easily considered excellent.

Credit cards have been more on-demand since the global pandemic began. Due to travel and other restrictions placed for most areas, people find convenience in purchasing and making transactions as well as payments online. 

However, while there are measures imposed almost everywhere, doing personal inquiries with your credit card issuer has been quite difficult. 

Luckily, these days, everything can be done with the help of the internet. So, if you’re trying to figure out whether your credit score is just right, we’ll help you out. 

Understanding Credit Scores

Getting credit cards could always mean a huge adjustment. Especially if it’s your first time getting one. There are things you will have to familiarize to be able to smooth sail with your account and avoid small to big errors. Credit scores are one of them. read more

Repossession happens when a lender who gave you a vehicle on credit takes back the car without a court order. It usually happens when you have missed payments. And it is never a good thing for your score.

When a creditor looks at your credit report from a credit bureau, such an event shows up in ways you won’t appreciate. 

After a remo has been removed, you can expect your credit score to increase by as much as 100 points. You may gain back the points you lost by also as much as 100 points. Learn how repo affects your credit score and ways you can remove your repo from your credit report.

How Long Will A Repossession Stay On Credit Report? 

A repossession record will stay on your credit report for seven years! The 7-year period starts from when you first miss a payment. And your credit score will suffer.

However, the rest of the history of your credit accounts will remain on the credit report. If you have no other missed payment, your account status will be positive. And that positive status will remain on your credit report for 10 years.  read more

Through the years, the life of consumers has relied so much on the credit system. Public works, businesses, and private properties have been built mostly with the aid of credit. In our personal lives, we rely on credit to afford big purchases. One tool used by moneylenders and financial institutions is the so-called credit rating. 

Our rating is a reflection of our payment history and our ability to repay our loans on time. Also, our score in this rating dictates the amount we can borrow, the interest rates of our loans, and other terms of our loan.

What Is A Credit Score?

A credit score refers to a numerical code between 300-850, which rates a person’s creditworthiness. A higher score means a person could be trusted with a more significant loan amount. They could receive better loan terms and deals. The credit score is based on a person’s credit history, including their number of active accounts, total debt, repayment history, and many other more.

In the U.S., 70 % of the consumers have FICO® Score rates higher than 650. If your score is 650, remember that it is very close to the Good credit score range, which is 670-739 points. By making some improvements, you may reach or even exceed the Good credit score range. This could mean more comprehensive options for credits and loans at more competitive interest rates for you. read more

Although it isn’t that complex, the use of credit cards is beyond spending a lot, purchasing goods, borrowing cash, and paying loans. It also has its pros and cons. And for many reasons, cardholders may still be unaware and are confused about using theirs.

For those who haven’t gone through the guidelines, you may have wondered what credit scores are and why it is important.Penny Saved has collected all the things you ought to know about it. Along the way, you’ll learn most of the information you need to take note of.

Understanding What a Credit Score Is

A credit score is a number between 300 and 850, denoting a consumer’s creditworthiness. This model was made by FICO and is used by financial institutions.

It is the one lending companies use to help them determine how likely it is they will be repaid on time if they grant a borrower of credit cards or loans. It is based on your credit history, which includes the number of open accounts, total levels of debt, repayment history, and many other factors.

Lenders use credit scores to evaluate the probability that a person will repay loans in a timely manner. read more

Credit score plays a very important role in taking out loans that have the best interest rates. Having a good credit score means you don’t have to worry much about a loan getting approved. But what if your score is far from being ‘good’, can you still get a nod from banks and businesses with a 550 credit score?

If you’ll talk about scores, Fair Isaac Corporation (FICO®) is one of the most used references by lenders if they want to see your current FICO® score. The score ranges from 300  to 850 — the latter is considered a perfect score. 

In a recent report from Experian, only 1.2% of Americans have a perfect score of 850. Comparing it to past data, the number of consumers having a perfect score rose by 63% over the past decade. 

Despite the increase, it is still considered small as compared to the total population of Americans. 

A 550 credit score is a poor score. You may be able to secure a personal loan with a credit score of 550, but you’re more likely to get a low loan amount and pay a higher interest rate. read more