Equifax Personal and Business Solutions: Your Credit Score Report is in
The purchase of a new home, a new family sedan, or starting a business is some of the
reasons why people take out loans. These assets could cost you tens to hundreds of
thousands of dollars each, thus it will really be a huge financial burden to acquire these
properties using cold cash. Taking out a loan (whether it requires you a collateral or not)
will help you in making the purchases of these properties.
However, there are two facades in taking out a loan—its either you win and take it all or
you lose and go home with nothing at all but a sad face.
Your success or failure in taking out a loan depends on a variety of factors, yet your
credit score is the most significant factor whether you are eligible for the loan of your
choice or not.
The rule is simple: if you have a good credit score, you have high chances of getting the
loan of your choice. On the other hand, if you have a bad credit score, you have slim
chances of doing so. Instead, your lender will provide you a selection of loans with a
common base—high interest payments.
Before applying for any loan that you need, you must understand the role of a FICO
credit scoring system, which is the standard for the credit score used by most lenders in
determining how risky you are to be loaned money to. FICO (Fair ISAAC & Company)
is the leading credit report agency that loan providers turn to with regards to credit
scoring for any loan application. In other words, if you possess a bad credit history, the
lenders will know your credit situation and decide on your loan application based on
your credit history.
Here is the summary of the FICO credit score classification:
If you have a credit score of more than 700, you are eligible for a loan with the
best interest rate under excellent terms.
If you have a credit score of between 640 and 700, you will be able to qualify for
125 percent of your preferred loan.
If you have a credit score of between 600