Bad credit score and its effect

Credit score is nothing but the numeric expression depending upon the statistical analysis of the credit profile. It determines your credit worthiness you borrow a loan then your credit score depicts whether you would be able to repay within the given period of time or not. If you score higher you will be qualified to have a new credit with lower interest rate.

Your credit score number can be varied from 2300 to 850. The lender can make an idea how likely you can repay the loan on a given time period on the basis of the score you have.

The bad credit score is given by the credit bureau against your poor credit worth. Lower score can be resulted because of so many reasons like late payment, exceeding your card limit or declaring of bankruptcy. If you have a bad score then you may not be qualified for any kind of new credit. You get a bad score if it runs under 680.

When you have a lower score then it denotes that you don't pay your bill on time, your irresponsibility towards your payment or you possess more against your account. With poor credit score you won’t be able to hire an apartment. Because the owner will think that you can't give him the rental on proper time.

If you have bad credit score then you can't apply for an auto loan. Instead of bad score if you would be able to access then you have to pay the interest on higher rate than the others against your loan.

While you go to insure your automobile or property then the insurance company assigning premium along with other co pays in higher rate due to bad score. It also affects
In your professional life also. When a company going to hire you for a particular post and you has a bad score then they ask you for a written consent. Otherwise they will disagree to appoint you.

Bad credit can't be repaired but you can improve it. Long term financial pay off can be possible only when you have good credit score.

1 comment:

Unknown said...

Have bad credit can cause you to pay more in interest on loans and can even affect whether you get a job in some cases. There are several simple steps you can take to improve your credit score and this starts by understanding what makes up your credit score. There is a great article on this here:

http://www.cesidebtsolutions.org/credit_reports_credit_scores/

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