Hi bryan hardison president of champion strategies and spokesperson for shop, smart autos, where we try to inform you, the consumer of all the latest things that are going on to make your vehicle buying or service experience the best.
Today we want to look at one thing, especially for the youngsters or first-time buyers that are entering our arena this year, and that is your credit score.
So we’ll do this in two parts, so a good credit score is typically anything above 670.
You see your credit score is a three-digit number that tells a lender.
How risky a borrower that you can be a credit score can determine whether you get approved for a mortgage, auto loan or a new credit card.
It also influences the terms of the loan, including the interest rate.
A credit score can be negatively influenced by late or missed credit card cell phone utility or loan payments.
Credit scores are like a gpa of adulthood.
If you will, just as colleges, use gpas to evaluate students during the admission process, banks and other lenders evaluate us by our credit score when we apply for a new credit card mortgage or an auto loan, there are three credit bureaus equifax, experian and transient union.
They closely track a person’s financial history to develop an individual credit report and calculate a three-digit credit score which tells lenders how risky a borrower that person is the lower the score, the greater the risk.
Anyone who has ever opened a credit card as a credit score.
The bureaus are given information about our credit card history from creditors, but they don’t have all the same information which can lead to a slight variation in the credit score’s calculation by each one of the bureaus credit scores fall into five categories.
The three major credit bureaus created a vantage score model which breaks down very poor or the lowest 300 to 549, pour 550 to 649.
, fair, 650 to 699 good 700 to 749 and excellent 750 to 850.
Now also there’s a fico f-i-c-o model that has poor from 300 to 579 fare from 580 to 669 good from 670 to 739, very good 740 to 799 and excellent 800 to 850.
In determining your risk as a borrower, lenders may match your credit score against either model, but industry specific models also exist according to experiment, when you rank largely determines how you get approved, the ranking is everything it also influence the terms of a loan, including the interest Rate, so when you have those credit cards, when you have those payments that you need to make know that they’re being tracked and by you missing one or a few, this is recorded and all of the three credit bureaus are tracking you.
So next time, when you make that choice emotionally to pay a bill or to go out and have fun – and you don’t have the funds to do both when you make that wrong decision down the road, it may catch up with you once again, brandon hardison, president Of champion strategies and spokesperson for shop, smart autos, as always in parting, you go out and make it a champion day.
