What are credit score scales
If you are thinking of applying for loans then the most important thing for you to keep in mind is your credit score. This score, found on experian credit reports, is on a scale of around 300 to around 900 and is going to be one of the main factors which help determine whether you will be getting a loan or not. This is also the source from which a lender is going to check your credit history and whether you have any bad debts in your name or are having a hard time repaying any of your already existing loans. If you are making repayments on time with no trouble then you should be absolutely fine, but if you have had problems repaying some loans, you will definitely not get loans easily.
It is quite obvious that any lender would want to know as much as possible about the person they are lending money to and credit reports make this really easy for them. It is recommended that you too get a copy of your credit score from websites like www.creditkarma.com and experian now before applying for any form of credit so that you know exactly what your score is and apply accordingly. You need your score to be at least 350 for any lender to even consider loaning you money. And the higher your score is, the better the chances of you getting a loan.
Even though there are three credit unions which have been appointed by the Federal government to calculate people's credit scores, don't think that all of them will show the same score. Each of them have a different method for calculating your credit score and while one of them might think your score is 700+, another might not think it is more than 650. This is why it is important for you to check your score with all of these agencies. This is the only way you can truly ensure you will get credit.
One more thing I can tell you about your credit score is that as it gets higher, you will not only find it easier to get loans but will also find it much cheaper. That's right; lenders tend to offer lower interest rates to people with high credit scores. So instead of wasting your time looking for alternate ways to get approved for a loan, why don't you work on increasing your credit score? It is definitely a lot more effective method. And once you have a good score, there is nothing that can stop you from getting credit.
