Credit scores and reports are a jungle of jargon, but do not fear! Here at EZPZ Finance, we’ve put together a quick guide of everything you need to know.
What exactly is a Credit Score
A credit score is a number that shows how likely you are to repay money you’ve borrowed. This number is used by lenders to decide whether or not to give you a loan, and if so, at what interest rate. In other words, your credit score is very important!
How is my credit score calculated?
The exact formula for calculating a credit score is proprietary information held by the credit reporting agencies. However, we do know that five factors are used in calculating a credit score: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%), and credit mix (10%)
What is a good credit score?
A good credit score is generally considered to be anything above a 680. A score of 700 or above is considered excellent
What is a bad credit score?
A bad credit score is generally considered to be anything below 580. If your score is below 580, it may be difficult to get approved for loans or lines of credit
Credit scores are important because they show how likely you are to repay money that you’ve borrowed. Lenders use them to decide whether or not to give you a loan, and if so, at what interest rate. A good credit score is generally considered to be anything above 680, while a bad credit score is Anything below 580. You can improve your credit score by paying your bills on time, maintaining low balances on your accounts, and avoiding opening too many new accounts at once. By following these tips, you can improve your chances of getting approved for loans and securing favourable interest rates!
Can EZPZ help?
EZPZ Finance is here to help you with all of your financing needs! We as a top notch finance broker in perth offer a wide range of options to suit your unique situation, and our experienced team is always available to answer any questions you may have. So don’t hesitate to reach out – we’re here to help you get the best possible financing solution for your needs.