Amidst the misty economic days we are witnessing currently due to the economic crisis which hit the world in 2008 and still has repercussions until the moment and many other factors loan providers became pickier in the lending process.
Lending nowadays depend on a number of substantial requirements and qualifications including credit score which is in particular the main requirement.
It is calculated by a number of reporting firms like FICO, Equifax, Vantagescore and other. It varies between 300 and 850. The higher results you get the better your financial situation will look which means ability to purchase more stuff and getting your hands on bigger loans.
The scoring scale
The scoring scale varies according to the general economic situation, what was regarded as perfect rate 20 years ago is now mediocre or average, and the average scoring then is now regarded as bad one. Bad credit stands as a stumble rock before borrowers’ needs as it restricts them from gaining big deals or buying valuable commodities.
For answering the most frequent question; what is perfection in this matter? It’s to have above 750, however, good rate is between 700 and 749.
If your credit score is below 600 then you need to work on it as this is regarded as bad and you won’t be able to purchase a lot of stuff, you won’t be able even to get many types of loans from personal loans to house loans.
Characteristics of perfect credit people
Well actually they are not aliens they are human beings. FICO released a report in 2012 studying the characteristics of the high or perfect results achievers, we mean their financial characteristics no doubt.
The study focused on people who have score more than 785, which is perfect actually that everyone should be jealous about it no doubt.
The study found that two-third of them have less than 8,500 dollars in total debt, except for mortgages. It found also that 96% of them didn’t miss any payment on their payment history, and they mainly specialize 7 per cent of their credit on cards.
So now you know it now. If you want to have perfect score you need to be like those people and acquire these characteristics as it’s proven to be totally worth it. You will get lower mortgage rates, lower rates on personal and auto loans, and have access on wide range of loan services with various time limits, amount, and terms to choose from.