What Is A Credit Score Rating?

If your company is using any of the three credit bureaus that use FICO method of analyzing the credit worthiness of its customers, the credit score scale that you will be referring to  would be the credit score rating of 300 to 850. There are some firms that utilize 300-850, while another firm is availing the use of letters A-F and 501-990 in its credit score calculator such as the Vantage Score. The use of numbers and letters is not of big consideration but what is universally accepted by all was the fact that the lower the grade the higher the risk and the higher the grade either in letter or number, the lower the risk of non payment of account.

Under the FICO method, a good credit score range is from 700 to 759. An excellent credit score is from 760 to 850. Creditors are more inclined to know the clients that register what the highest credit score is. This procedure they could protect their company from probable bad loans in the coming days.

Inversely, customers who apply for credit or financing are concerned on what a good credit score is and the means to acquire it. Their interests are more focused to seek out the essentials on what is a credit score is made of. How it is done by the three business bureaus of Experian, TransUnion and Equifax and how to increase credit score can be learned from the initial rating of the credit score calculator as offered free by many online credit companies.

They are interested to look for ways how to fix credit score. It is best for the customer to be informed that a lower grade on the credit score rating is disadvantageous to him; and if ever he will given credit, the component interest rate would be very high that could mean further problems for his firm. That’s why it is necessary for him to get a copy of a credit score from any of the credit bureaus and analyze it or could seek an immediate credit score calculator and have an initial computation of his credit record performance.

Based on these preliminary moves, he could be advised as to the level of his ability to obtain a credit and from there design the next step. If his credit rating is at its barest, improving his credit score must be his priority, and the credit score meaning must be his major concerned to satisfy.

How Your Age Affects Your FICO Credit Scores

Let’s say you are a 22 year old college graduate looking to buy a car. You go in to get a loan and you are denied because you have no credit history and therefore a low or no credit score. Is it because you are young? Is the finance company just trying to get more money out of you?

Do you know how your age affects your FICO credit scores? Does your age have an impact on your credit scores?

Your age does not affect your FICO credit score. But it is a common misconception that your age does play a factor in your credit scores. It is illegal to consider age, race, religion, national origin, gender and marital status in credit scoring. These are not factored into your FICO scores. Although almost 40% of the population believes age is a credit scoring factor according to a recent survey.

So your age does not have any impact on your Transunion, Equifax or Experian credit scores.

Factors contributing to someone's credit score...

Going back to our college student, the reason he or she may have a low credit score or no credit score at all is because they have not built up any credit history therefore they cannot be graded and given a score.

You need to have a payment history of some sort from an unsecured line of credit, personal loan, credit card, or auto loan to start building up credit.

In your early 20s, you also have not had enough time to build up a lengthy payment history. And the shorter the time period your accounts are opened the less of an impact it will have on building up a solid FICO credit score.

What you can do is get a cosigner or coapplicant like your parents to apply with you and get you a loan to start building credit. Using a cosigner with good credit can help you get a lower interest rate and a lower monthly payment. Then once you make all those payments on time you can qualify for a loan by yourself next time around.

Now you know that your age does not have an impact on your FICO credit scores. What you can do now is take a look at your free Transunion, Experian and Equifax credit scores online and see what kind of credit score you have.