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For this there is a criterion that the credit rating agencies follow. They gave a report to the banks / lending agencies called the credit report from the data base of customers who have taken loans and use credit cards. The credit rating institutions prepare a report based on the customer's prior records and payment schedules. These interpretations are grounded by two mathematical models in US which are known as FICO and VANTAGE. The mathematical credit scoring techniques delve deep considering the credit history along with the current debts of a particular customer seeking loan.

The more of a track record you have of using credit wisely, the quicker your score will grow.

Take the steps now to have good credit. If you are new to credit, then start using it and using it wisely. The best way to get good credit is to star using it a lot in small quantities that you know you can pay off. The more of a track record you have of using credit wisely, the quicker your score will grow. Don't apply for a lot of credit cards or look up your credit too much or it will hurt your credit as well.

This is the usual score that the loan industry requires and they often consider a score below 620 as sub-prime. They shall charge a very high interest rate for those with a low FICO score. If you have a low score and you wish to avail of a home loan, you need to place a big down payment or secure a loan guarantee from Veterans Administration or the Federal Housing Administration (FHA). In 2008, the FHA began to utilize the FICO score as a tool to approve home loans or home mortgage insurance.

It is particularly important to try to boost your credit score if you are buying a car or applying for a mortgage as it will help you to get a better interest rate. As can be seen, getting and maintaining a good credit score is essential, and you should consider it a priority in your life if you want to be successful. Lastly; don't ever think that credit history and score is unimportant; when the nation is in an economic downturn, your credit score matters even more than the amount of cash you have on hand. Being late on substantial things like a mortgage or car loan can significantly drop your score, making it hard to get back within a good credit score range. The overall value of any rating will take on different meaning dependent on the state of the country's finances, and you need to be sure you aren't caught with too low a score during this period.

• Car Loans
• 580 to 619 scores low
• Length of credit history
• 700 and above
• Whether or not you will be hired for a job you are seeking
• Down payment amounts
• 720 and above - Excellent

How High Can A Credit Score Go, Credit scores can range from a high of 850 to a low of 300. Of course, the higher the score, the more likely you are to get a great interest rate and approval for a loan. With a score of 700 or above, most lenders will see you in a very favorable light, for your credit to be considered in the category of Excellent to Very Good. Depending on how much over 700 your score is, some lenders will offer you even better rates than the 700 and below score crowd receives.