Credit Rating Score Meaning

Sunday, January 24th, 2010 at 12:35 am

Credit Rating Score Scale

Credit rating score scale for many during the financial crisis have taken a big hit. It is a fact that never before have more had a below credit rating score scale below average. How though do we understand the credit rating score scale and what can we do to improve our score?

Your credit rating score is dependent on factors in your Credit Report. Every lender has their own interpretation of how they allocate your Credit Score. In general credit rating score scale ranges from 350 to 850, with individuals at either end extremely rare. A Credit score above 680 is considered to be extremely good whilst a score below 500 is considered to be bad.

It is a fact that banks have tightened their requirements regarding credit approvals and it is now harder than ever for those with below average Credit Scores to get approval from banks. There are though more than ever before many lenders willing to offer credit to those with Damaged Credit histories.

Your first call of action should be to determine your own credit score. Many sites will offer you a Free Credit check which you can use to determine your own credit score. If you have defaults on your Free Credit Report then it is very unlikely that the banks will offer you credit. If this is the case you could approach lenders who do offer credit to those with damaged credit histories. You will find though that you will pay a little more in interest than you would from your bank.

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My Credit card interest rate decreased. Does this mean I improved My Credit Score?

I noticed that my interest rate on my credit cards has decreased. For example: In Feb it was 18.74% and now it is 16.24% Does this have to do with the Feds lowering the interest rate? I completely paid off two of my credit cards in March. I’ve made some purchases on the Credit Card since then but I have been paying almost the whole balance amount every month.

Your interest rate is probably tied to the Fed rate. As it goes up or down, so does your rate.

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