What Is a Bad Credit Score

A three digit score can affect your life: that is your credit score and what is a bad credit score is something that could ultimately cause your financial demise if you do not take it seriously. A three digit number seems harmless when you look at it but it is a judgment applied to you on how you manage your bills and debt repayment. If you have high credit scores, you are given all possible perks for your loans and accounts. Bad credit score is a lingering curse to your credit worthiness. Bad credit score can ultimately affect you in all aspects of your finances unless you do something about it.

So, what is a bad credit score in terms of your financial endeavors? Let us look at mortgage. If your score is within the average upwards, you can receive the best rates from the lender. Your mortgage payments will then look a lot more manageable and you get perks for your home equity loan. If you are within the scores 675 to 619, you might fall into a more unappealing loan option where the interest rates could be 50% higher than the others. What is a bad credit score for mortgage? If you go below the score of 620, you are already considered sub-prime and that means you have unattractive credit score. It would be hard to find lenders and even if you find one, the interest rates will be at maximum. Bad credit score could determine savings of several thousands to debts of several more thousand dollars.

What is a low credit score in terms of credit cards? We all know that credit cards are very important for many consumers. Sadly, a bad score could make your credit card applications more of an invite to massive debt. Interest rates can rake up to 18% which is unsurprisingly common especially in this terrible economic climate. However, if you have good credit, the interest rates can be lowered by up to 45% compared to bad credit applicants. You need to improve you score first if you want to get credit cards. Bad credit score can lead to bad credit card plans and this lowers your score.

Low credit score can affect other living expenses and situations. Consider these aspects: low credit score could be a massive disadvantage on car loans, or other kinds of loans. Your premiums for homeowner and car insurance can also rise significantly if you have bad scores. Certain job positions require credit checks and if you have bad credit, even if you have the skills and the credentials to prove your worth, the three digit number may prevail and cost you a possible career.

Though our lives are more than numbers and scores, you cannot deny the fact that the credit score has a big effect on our financial aspects and living conditions. Get to know your score more and understand how to raise it to improve your credit condition. If you want to know your credit score, simply sign up here and receive 3 credit scores from the major credit bureaus.