The credit scoreis a concept that many have heard about but only some are clear about what exactly it is. However, the credit score of a person is the first thing asked about when buying a house, using a credit card or even taking a loan for one’s college. This is where one wonders how much credit score is good? and how much is considered to be bad.
In many instances, the credit score stands as a deciding factor in whether the person is even eligible to take a loan or insurance. With a good credit score, one can get a loan easily with additional benefits like lower interest and affordable EMI. Thus, making it beneficial for one to have the best credit score.
What is a credit score?
In a nutshell, a credit score is the rating or ‘score’ given to an individual based on their performance of paying a loan back and how frequently they take a loan. The companies fix a three-digit value for each customer, making it easier for other banks and companies to deduce whether a person is trustworthy for a huge loan or may likely declare insolvency as may have happened in the past.
What is a good credit score?
Since credit scores are given between the range of 300 to 850, any score above 670 is considered to be good while any score above 800 is considered to be an exceptionally good credit score. With such a high score, one may get additional benefits like low interest and a larger sum for a loan.
While the world runs on money, ethics helps one negotiate and build trust. Credit scores highlight the ethics of people concerning money as well as loans, and with a good credit score, one can reap the benefits that would make their conduct with money easier.