Understanding Your Personal Credit Score

calculator and house

Understanding your credit score is the first step to getting the best deal in a loan!

Understanding your personal credit score can change how you spend and what you can afford. It can change everything, including your ability to get a loan of any kind. Pure Finance Group helps homeowners find great contractors and great home improvement loans to match. If the contractor you want to use is not part of the Pure network, you could request him to join our network so you can benefit from the savings and he can benefit from serving you. Here’s more on how to understand your personal credit score.

How Lenders Use Credit Scores

Lenders use credit scores to assess the likelihood that you will pay back a loan on time. Your credit score is an evaluation of your trustworthiness as a borrower based on your credit history. The longer and more consistently you have paid back all your loans (including credit card payments) on time, the more likely you will do the same when you request to take and pay back a home improvement loan, mortgage, etc. Based on your credit score, the lender will accept or deny your request. If he accepts, he might charge a higher or lower interest rate based on your credit trustworthiness.

How to Assess Your Credit Score

How can you tell if your credit score is healthy or not? You can get a FICO score for free, but just be aware that there are multiple credit scores out there that use the same or similar metrics. The general scoring range is between 300-850, with the worst being 300. 

How to Improve Your Credit Score

The higher your credit score can be, the better your financial habits are, whether you plan to get a loan or not. Even if you have an excellent credit score ranging in the 700s, why not aim for over 800?

You can increase your credit score simply by exercising good credit card habits. The only way you can improve it is to pay off debts early or on time consistently via your credit card or any loans you take on. 

Factors That Affect Your Credit Score

What other factors might affect your credit score? 

  • Duration of your account
  • How many credit accounts you have
  • How close you got to your credit limit
  • Timeliness of payments

Pure Finance Group Is Here to Help!

Thank you for your interest in Pure Finance Group. We’re so excited you’re here. For more information on how our payment processing and financing services can help you with your financing needs, give us a call (410-401-4957) or fill out the form on our contact page today. If you have a question about any financing services we provide, including setting up home improvement loans, we are here to help answer all your questions. Just give us a call (410-401-4957) or contact us today. To keep up-to-date with the latest financing tips and solutions, keep in touch with us on Facebook and LinkedIn!

This entry was posted on Thursday, May 11th, 2023 at 5:17 pm. Both comments and pings are currently closed.