Credit Scores, It seems you can't be conscious for more than a few minutes a day that you don't hear someone hawking some new thing about it.
You know your credit report is uses for more than determining credit worthiness.
Landlords, insurance companies and employers are all using credit reports to determine risk or as one factor to determining if you are some one they want as part of their organization.
Landlords and property managers want to know if you were good about paying the rent where you are now or where you were before.
Insurance companies have different premiums for people they see as higher risk of payment default. In other words, you get better rates if you handle your financial obligations reliably.
You have heard of Experian, Equifax and TransUnion. They are the big three of credit reporting agencies.
Each of them has their own way of compiling credit scores and their results are heavily relied on by lenders etc.
You may not have heard of the others, A quick internet search "credit reporting agencies" produced a list of over 22 total agencies in the United States alone.
The other major one you may not have heard of is used largely by insurance companies and employers.
The FTC has, in an investigation of credit-based insurance scores, determined these scores do effectively predict consumer behavior and so risk can be assessed in part by how you handle your finances.
The largest provider of consumer credit-based scores I have found is Choicetrust.
Like the other credit agencies, you can get your report from them to see what they are telling the world about you.
The big 3, Experian, Equifax and TransUnion are slightly different but the concepts are the same.
With Experian the maximum score you can receive is 830 only about 13% of the country has a score over 800.
A score over 800 is considered excellent.
At this level you would likely be usin g credit often and paying off early.
A very low risk score is o ver 700-799. About 45% of the US has a score in this range.
You would be approved for any type of loan, secured or unsecured, personal or credit loans. You would receive good rates and terms.
A low risk score is 680-699 is considered Good Credit. About 15% of the US is here.
You can be confident of approval at this level. But you will pay higher interest rates. Not huge, just not the best. This is about the average level in the US.
620-679 is a Fair Score. About 12% of the US is here.
You may find restrictions on the kind of loans you are offered. You will not get the best interest rates. You will want to fix your credit before going for any big money loans, even auto can be much more expensive with credit scores in this range.
580-619 is a Poor Credit score. About 8% of the US is here.
You will likely be able to get an unsecured personal loan or even a mortgage. You won't like the interest or terms. The lender will dictate them. You will accept them. OR you can go through the process of fixing your credit report. It takes some work and some lifestyle changes but you financial life will be easier as a result.
500-579 is bad news. About 5% of the US is here.
You can get a loan, but hold your nose and open your check book wide. You will be solidly in the payday loan world. That is a very ugly place where a $200.00 advance can balloon to $1000.00 in short order. If you are borrowing on next weeks paycheck, $1000.00 might as well be a million. You will have a tough time getting it paid off. Short of paying off a payday loan, relief is difficult to get. Credit repair does not have to cost you money. It does take time and focus. If you are in this range it is time to focus. It can get worse.
499 and lower. About 2% of the US is here.
You need real professional credit counseling, Fix your credit before attempting to get any kind of loan. You can recover from here, be patient. The first s tep is no more debt, just stop, today!
The lowest FICO score yo u can get is 200. I am not sure what you would have to do to get a 200. I can only imagine you would have plenty of time to consider your actions while you cool your heels in jail.
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