Credit score chart is a report of your recent credit history. It is actually the FICO score with some other related information. According to FICO the credit score could be any number from 300 to 850 depending on the history of your credit. In simple words it is an expression based on the statistical analysis of a person’s credit files and it is used to represent the credit worthiness of that person.
Basically credit score charts are used by the financial institutions, banks, and credit card companies to evaluate the risks in case of lending money to consumers and to lessen losses due to bad money owing. Credit scores are also used to decide whether the applicants are capable for loans. If they are qualified, it also helps to determine the interest rates and credit limits they should get.
There are two major facts that we need to know when we are dealing about the credit score chart. Firstly, we need to understand the five main factors that are used to find out the credit score of a person and how these factors are selected. After that we need to know how live skor to read and understand a credit report. These are mentioned here under. Firstly thirty-five percent of the score depends on the record of timely payment of loan. Then thirty percent of score is calculated based on others debts, unpaid bills and total outstanding balance.
Fifteen percent of the rest is dependent on how long you are using the credit system and the history of that time. Ten percent depends on the types of credit and the number of credit account. Ten percent depends on new accounts and types of account recently opened. The score you achieve in FICO credit score chart classifies you in different groups and provides you different types of facilities.
If your credit is between 700 to 850 it would be called an excellent score. For this score you will be eligible for any kind of loan with lowest interest rate. For this reason you will be under fair repayment terms. If the score is between 680 to 699 you will be easily approved for any kind of loan from your lender. Score between 620 and 679 is considered as the reasonable score. The people under this category will be approved for any kind of loan but they will not be able to get the best interest rates. Scores between 550 and 680 will not allow you to have loan of any amount. Some lenders may agree to give you loan but you have to pay it back with highest rate of interest.