Reasons to Understand Good Credit Score Range

by John S. Pubisher

Summary: As explained earlier, having a score within the good credit score range goes beyond just borrowing money. It can help in so many other personal ways from getting a good job to getting an apartment of your choice. It’s known that your credit score will consider all the information about your credit usage that was previously provided and assign you a number which could fall within the good credit score range. The higher the score, the better it will be. This will show that you are less of a credit risk.

Considering the fact that we have a basic understanding of a good credit score range, its best to also have an understanding of how good credit score I calculated. This number is based on the information on the credit report. This credit report will contain details of your credit usage over your life-time which will include if you have been paying bills regularly, the amount you owe, and how long you have been using each account.

Some companies work on which are known as credit reporting agencies are in-charge of collecting this information about your financial behavior. This is done by exchanging information about your financial behavior over a given period of time. They do this by getting information from companies that offer financial items such as loans, credit cards etc. The three basic things which these agencies care about are: the money you have borrowed, the amount of money you owe and whether you have been making timely payments.

These agencies get this information from everyone you are indebted to and create a picture of your trustworthiness which will be in form of a score. There are basically three major companies which are responsible for these; they are Equifax, Experian and TransUnion. With a score within a good credit score range, an individual can have a much easier life than having a bad credit score. There are so many reasons for someone to make sure you have a score within the good credit score range.

It’s less stressful to get a Loan:

A lot of people understand that when you don’t fall within the good credit score range, it will be much difficult to get a credit card, a mortgage or an installment loan. Even if you get a lender who is willing to take the risk, it will come at a higher interest rate that someone who falls within the good credit score range. For someone who doesn’t fall into the good credit score range, you might face some additional issues such as getting a cosigner or having to put up collateral just to get the loan.

It will be much easier to get a job:

So many states have allowed the practice whereby prospective employers are given the chance to check if an applicant falls within the good credit score range. Even though they won’t see the exact score, they will be allowed to view some major setbacks which are dragging your score backwards which includes frequency of missed payments or legal issues. These problems could show lack of responsibility and could hinder you from getting a job.

Gives low insurance rate:

For individual who falls within the good credit score range, you could pay less/ much less for a car and property insurance compared to what someone with a bad credit rating will pay. This is due to the fact that issuer will see an applicant as a riskier customer because an applicant with a bad credit is more likely to file a complaint.

It will help a small business during launching:

If your personal score falls within the good credit score range, it might be all you have to save a fledgling business. If you don’t have good credit, it could be very difficult and costly.

It can help get an apartment:

Having a score within the good credit score range is important when getting a mortgage but it is also necessary when getting a good apartment. Most prospective landlords might as well refuse to collect rent from you or even charge at a higher rate for someone that doesn’t have a good credit score. They will see it as a risk considering the fact that the tenant that doesn’t have a good credit might not make payment on time.

It will be easier to get utilities:

For someone with a score within the good credit score range, it will be much easier to get the electric and cable company down to your house. But an individual without a good credit might have to make some deposits or go as far as submitting a letter guarantee (who is someone that will have to make to make payments when the bill is not being paid) before the electricity, gas, water, phone or internet comes on.