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WHAT CREDIT TYPE ARE YOU?
Your credit is the most influential aspect when
determining what kind of interest rates and loan terms
you will receive when applying for any type of loan or
credit card. Learn more about
the value of credit.
Do you have any clue what your credit rating is? Below is
a breakdown of the main credit classifications and the
factors that are used to classify an individual's credit
status. You can learn more about how the
credit reporting companies will calculate your credit
score.
Besides examining the material presented below,
we highly recommend that you get a
credit report copy online before you apply for any
type of loan or credit. You want to guarantee that you
are getting the most out of your credit. You don't want
any misinformation or outdated data to hurt your chances
of approval or the terms you receive. If there are
mistakes present, you must
dispute all errors on your credit report immediately.
If you obtained a copy of your credit report, and your credit rating is not what you expected, there are
ways you can
improve your credit score. People with a lack of
credit can learn
how to build no credit into a positive credit
history.
*** A tradeline is any type of loan or credit card.
Excellent Credit
-- Minimum credit score of 685.
-- Must have a minimum of five years worth of credit.
-- Must have a minimum of five tradelines with at least
three years worth of payments that have been reported to
the credit bureaus.
-- No utilization of credit card lines (otherwise known
as limits). Basically, this means no balances left on
credit cards.
-- No late payments.
-- A minimal amount of credit inquiries.
-- Homeowner of at least two years will help.
-- Being employed for at least one year at the same place
of employment.
-- Reside at the same residency for at least one year.
Good Credit
-- Credit score will range between 620 and 684.
-- Must have a minimum of three years worth of
credit.
-- Must have a minimum of three tradelines with at least
one year worth of payments that have been reported to the
credit bureaus.
-- No heavy utilization of credit card lines.
Basically, this means minimal balances left on credit
cards.
-- No delinquent accounts. All tradelines must have
up-to-date payment histories. Having one late payment is
acceptable.
-- Homeowner of at least one year will help.
-- Employment at the same job for six months.
-- Reside at the same residency for at least six months.
-- No auto repossessions.
-- If you have experienced a
bankruptcy it must be discharged for at least two
years.
-- A minimal amount of credit inquiries.
Fair Credit
-- Credit score will range between 565 - 619.
-- Must have a minimum of three years worth of
credit.
-- Must have a minimum of three tradelines with at least
one year worth of payments that have been reported to the
credit bureaus for each tradeline.
-- Owning a home is an advantage.
-- Having more than one late payments is OK as long as
your accounts are all 'paid as agreed'.
-- Employment at the same job for six months.
-- No more than two different places of residency in the
last year.
-- Bankruptcy discharge is OK. Attempting to
re-establish your credit is looked at positively by
the credit bureaus.
-- Numerous credit inquiries within the last year.
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