Credit Score Rating

Credit score rating will play an important part in your life when you would like to qualify for loans at reasonable interest rates and low monthly installments when making payments. A good credit score rating will help in getting good jobs as well as finding a good apartment on rent.

When you maintain a good credit score rating, your creditors and financial lending institutions will know that you will pay your debts in time and with a sense of responsibility. They will feel that they are at less risk in giving you that finance compared to those kinds of people who have low credit score rating. It is going to be very easy for you to get loans or mortgages when you score in the range of 720 or above with your credit score and you are likely to get quick approvals on your loans.

It is very important for you to know your FICO score and work towards improving that score.


• 800 – 850 Excellent – Fast credit approval and very low interest rates.
• 720 – 799 Very Good – Fast credit approval and low interest rates.
• 620 – 719 Good – Fast credit approval but slightly higher interest rates.
• 580 – 619 Below Average – Credit approval will be given in rare cases and the interest rates will be very high.
• 500 – 579 Poor – Loan applications may be passed with very high interest rates and with foreclosure or bankruptcy on the report.
• Below 500 Reject – Chances of getting credit approval are dim for any type of credit application.


The three credit bureaus, TransUnion, Experian and Equifax, will determine your credit score rating by looking at several factors like your overall credit history, loan defaults, judgments, foreclosures, collections, late payments, any charge offs, payments on present loan accounts and number of credit accounts with outstanding balance.

You can expect to maintain a good credit score rating if you make payments to your creditors on time. Sometimes, even with timely payments, you may discover that your score is not as decent as you expect. To be in control, you will have to take a copy of your credit report and check on the entries that are reflecting on the report. It is possible that you may be a victim of an identity theft where someone has used your social security number or other confidential credit card details to open a credit account and has stopped making payments at a later date.

Another thing that could be hurting your credit score rating would be creditor entries which you may have already cleared but they have not yet been reported as payments to the bureaus. Your credit score might not be reflecting the actual values as there could be few items which you may have disputed about and which have not yet been removed from your report.


In situations where you have already paid but the payments have not yet been reported to the bureaus, you can send a letter asking your creditors to send the updated information about your account to the credit bureaus so that the payments will get reflected in your account and will help in improving your credit score rating.

In cases where some items are still reflecting on the report on account of disputes, you can again sort the matter out in writing and appealing to ensure that such items are removed from the report so that you can aim to see an improvement in the credit score rating.

You have to remember that it takes about two months for the corrections made by the credit bureaus to reflect on your report. The earlier you take your steps, the faster the issues are going to be resolved to improve your credit score rating.