A good credit score equals a good loan deal. Lenders make decisions regarding loan approval and its details based on a three-digit, statistics-analyzed number called credit score. This number says how creditworthy a person is. The higher the number, the better the credit score. And the better the credit score, the more capable a person is to pay back.
Lenders have different definitions of how good a ‘good credit score’ should be. But generally, it starts from 720. Most Americans have a credit score of 678 and below. Only few US citizens have a good credit score and even fewer have excellent scores.
These figures were not magically created, though. There are certain factors that affect a person’s credit score. The payment history, total amount owed, and length of credit history make up the 80% of a FICO credit score. The remaining 20% includes the recent inquiries for loan application and mix of credit types.
With these factors in mind, it will be clearer how one can change a bad score to a good credit score. The EasyBadCreditRepair is one of the most informative websites for those in need of financial help. It features simplified guides on personal finance, including articles about credit repair.
The finance world can be quite intimidating and websites like this one make it comprehensible.