Ever imagined how a credit lender reviews your credit scores before approving your loan?

what does your credit score tell lenders about you?

what does your credit score tell lenders about you

Well, the game would be much easier if you could guess what credit lender focuses on while reviewing your credit reports, isn’t it? That would help you to act upon improving or maintaining your credit scores. You would be able to stand your loan approval (even for bad credits) after you have understood the lender’s perspective to your credit scores.

What is a general Credit Score’s range scale?
The generalized credit score scale lies between the following ranges from very poor to excellent:

Excellent: 766-850 and above
Good: 701-765
Fair: 601-700
Average: 500-600
Very Poor: 299-499

How is the credit score calculated?
The credit scores are often calculated by prioritizing the following set of parameters into certain percentage proportions.

35% Payment history: Maintaining a full length but a purposeful payment history through your credits leads your credit score to be in the best range.
30% Amount owed: Using too many credits and owing a large number of loans over your credits might be a risk of boosting your credit scores.
15% Length of Credit history: The more longer your credit history goes, the more your scores boost. So, ensure that your credit history goes genuine and long at the same time.
10% Credit mix: Your multiple credits sources such as a mortgage, credit cards, retail accounts, etc. might be taken into account, in case you have any.
10% New credit: Avoid risking your credit scores by opening too many new credit accounts.

Other credit-related information which is necessary from your Credit Reports
The further set of information is, directly and indirectly, leading to your credit scores. The lenders use these particulars to communicate with credit Bureaus and introspect your credit history too.

So, here’s what your credit report contains to give an idea of your credit score details and other relevant information:

Personally Identifiable Information: Your credit report contains your personal information like name, address, contact no., employment status, etc. This information holds vital meaning to keep a record of your genuine identity, as a borrower.

What best can you do for yourself?
Keep a check upon spellings of your name, correct and valid address, contact no., genuine employment details. This would help you approve for your loans (even bad credit loans) in the long run.

Credit Accounts: The lenders look keenly and report upon your credit accounts from time to time. This means that your credit limits, date of opening your account, credit balance, and similar information is in the keen eyes of the lenders always.

What best can you do for yourself?
To make use of bad credit loans as a lifelong help to your bad credits, ensure that you work upon your credit limits carefully. Moreover, keep updating every minute information regarding your credit balance and transactions with your credit limits.
Don’t miss your credit transactions or leave on pending casually. That would reflect your degraded credit reports currently in the hands of your lender.

Credit Inquiries: Credit inquiries depicts how many times your credit report has been requested for access. Also, it contains information about your requests to your lender for your credit reports. In short your credit report is requested and accessed and ultimately saved within your Credit Inquiries section.

What best can you do for yourself?
Check out the details of specific creditors who have been requesting your credit reports access. You can check whether the requests to access your credit reports have been genuine within your credit inquiries.

Public Records Information: To re-verify that your loan history is clean and undue, public records information comes into use. Credit bureaus collect this information from various state and county courts. Thus, your lender is also updated about your loans due in your past. Accordingly, further actions could be taken.

What best can you do for yourself?
Ensure that you never ignore your due loans. Also, keep in touch with your credit reports so as to aware of yourselves of any due transactions or loans to be focussed upon.

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