Most people are very laxed when it comes to their credit rating. In this article we talk about the importance of a Good Credit Rating Score.
They feel that a couple of credit card defaults will not harm them. If you are seriously considering buying a home by taking a loan then it’s high time to get serious about checking your credit worthiness. Credit scores have come a long way in establishing the credit worthiness of clients.Remember every bank will check your credit rating before granting you a loan.
Good Credit Rating Score
1) Home loans are offered on the basis of certain factors
The interest rate will depend upon the specifications and requirements provided by the customer.
The credit score is broadly defined below:
a) An Excellent credit score (760-850) will help in getting you the lowest interest rate available.
b) A very Good Score (700-760) will help in getting you an interest rate 0.25 percent higher than the lowest available rate.
c) A Good Credit score (660-699) Will help in getting you an interest rate at 0.5 percent higher than the lowest rate available.
d) A Moderate Credit Score (620-660) is the beginning of suspicion and so the interest rate will be approximately 1.5% higher than the lowest rate available.
e) Poor Credit Score (580-620). In this case very few banks will offer you loans. And if they do, then the rate of interest will be much higher than the lowest rate available.
2. The higher the credit score, the better are your chances of getting home loans at competitive rates.
3. In order to have a good credit score, it is important to ensure timely credit card payments without any defaults.
4. Even late payments and subsequent fines have an impact on credit worthiness.
One must try to maintain a good credit worthiness score which will result in faster home loans or other loan approvals and will also enhance your chances of getting a competitive rate for your loans.
