Guide On Your Credit History Rating: Things You Should Know

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Whether you are planning to apply for a loan in the near future or a credit card, it is very important to keep an eye on your credit score. Although it is still possible to get a loan with a bad credit history, understanding how the credit score works and working to improve your score will save your money and help you qualify for bigger loans. Getting a loan with bad credit will come with very high-interest rates or with certain conditions.

Furthermore, even if you are not planning to apply for a loan, you must also keep an eye on your credit score because it can affect the amounts of your insurance premium or the deposit on utilities. In some occasions, you may find it difficult to get a house with bad credit and thus, working to improve your credit score at all times is good for everyone whether you want a loan or not.

The commonly used credit models have four levels that range from 300 to 850. The credit score of between 300 and 629 is considered bad or poor credit while that of between 630 and 689 is considered fair or average credit. A credit score of between 690 and 719 is considered good credit while a rating of 720 and above is considered excellent credit. Once you find out your current credit rating, you can now look for helpful information such as credit secrets on Twitter among other social media platforms to help you improve your rating.

Basically, the main benefit of maintaining a good credit history is the number of options and products you will have access to at any single time. With a bad credit history, your options are limited as you will only have to deal with lenders who offer bad credit loans subjecting you to high-interest rates but with a good credit history, you can walk to any lender and get a loan enabling you to get better rates. However, the first thing you must do is to check your credit to help you understand what to do next.

Things that you should know about your credit score

A credit score is basically a measure of how likely you are to repay your debts in a timely manner commonly referred to as the creditworthiness. A low score may not deny you a loan but it is a warning to the lenders that you are an unreliable borrower and thus, make the appropriate decision. If the lenders choose to give you a loan with a poor credit history rating, they may insure themselves by offering you low credit limits or by charging you higher interest.

You must also realize that different credit bureaus can have different credit scores for various reasons. For example, if the information the credit bureaus have of you is different, the score will consequently vary. The score may also vary if one bureau is missing one of your accounts or if it does not have a full credit history. The score can also vary due to the varying information used to calculate the score. If one bureau puts more emphasis on the age of your accounts while another puts more emphasis on the repayment history, the score can vary even if they are using the same information.

It is also worth noting that although different bureaus will emphasize different aspects when calculating your credit rating, the majority will consider your credit card utilization rate. When it comes to credit card utilization rate, lenders want to see using the card but not depending on it and thus, you must keep your rate at the lowest level possible mostly between 1 and 20 percent to improve your ratings. The bureaus also consider the percentage of your on-time payments, the average age of open credit lines, number of negative remarks on your history, the total number of accounts and the number of hard credit inquiries. The hard credit inquiry occurs when a lender checks your credit report. A high number of inquiries will make you look like you are desperate and thus, you must minimize the number of times you apply for more credit.


To enjoy the benefits of a good credit score, you must adopt credit health habits that will not affect your credit rating negatively. You must also look for the best ways to improve rating by adopting some of the proven techniques and habits. The information on how you can improve your rating is commonly available for beginners and people with poor credit rating but you should always be looking for the latest credit secrets on Twitter to learn what works and what does not work. You must also keep monitoring your credit rating to find errors and suspicious activities that may affect your credit rating negatively.

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