What Is A Credit Score?
Credit scores are provided by credit bureaus. Lenders and banks include credit scores on their background check process to determine if an individual will be approved of a loan. A credit score can be classified into five categories: excellent, good, fair, poor and very poor.
What Is A Good Credit?
Good credit is a way to classify the credit history of an individual. This indicates that the borrower is able to maintain good credit history and is a safe credit risk. Any credit score that is above 720 is considered a good credit score, and 800 being excellent. In order to achieve this, you can borrow prudently, pay your bills on time, and do not have a high balance of credit used.
What Is A Bad Credit?
Bad credit is a result of not repaying bills on time and in full. Many times individuals have bad credit because they do not pay their bills at all and the accounts end up being charged off and sent to collections. An individual's credit report gives an in depth view of how the individual handles every credit account.
What Makes A Bad Credit?
Factors That Affect Your Credit Score
Factors That Do Not Affect Your Credit Score
Many of your negative credit remarks like late or missed payments, foreclosures, collections, and charge offs will stay on your credit report for as long as seven years. These marks can significantly affect your credit score and ability to get financing in the future.
Hereâs how long different negative marks stay on your credit report:
What Can You Do To Fix These Immediately?