Credit rating
For several years, when we try to obtain credit, we are told about credit rating, better
known in the industry as “Beacon score “. But what is the Beacon score?
This is a score set by Equifax. This one
analyze several factors, including how you use credit,
your debt and your respect of deadlines.
This score is one of the elements used by the institutions
fnancials to decide if you qualify for the product credit you are requesting. Ratings can
vary from less than 500 to more 800. The higher your rating is
high, the more you are a customer research. Conversely, more
your rating is low, less we have an interest in dealing with
you. In fact, the different
fnancial institutions are looking for customers with
a rating of 680 and over. For those with a score of 650 to 679, getting a loan is always
possible but higher conditions may be required. For a rating of 600 to 649, the
institutions will be much more severe in terms of
and the products available will be very limited. Under 600, only private lenders, with much higher rates, will be inclined to consider granting credit.
Other credit agencies use such scores, and some financial institutions even have their own
internal system.
But what are the elements taken intoconsideration to establish this rating?
The first factor considered, and most importantly, is your credit history.
In this sense, it is essential to respect the deadlines for payments to be made, not to fail
payments even if they are small amounts. This has a major in fl uence on the coast.
The use of available credit is another element that in fl uence the rating.
Use of more than 35% of available credit on a line of credit or a credit card has a negative effect on the score. In addition, use a credit card from
from time to time, and this for several years, turns out positive at the level of the score, provided to make good use of it.
The type of credit also influences your rating. A reasonable combination
of several types of credit can you report more points. Do not hold that one could hurt your score. The number of inquiries in a short time has a negative impact
considerable importance on the score, hence the importance of
deal with a mortgage broker. In this way,
he will be the only one to search a
credit bureau, even if your file would have to be referred to
some lending institutions.
