Good Vs Bad Credit

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. 
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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?

• There are various ways to hurt your credit score:
• Missing payments or paying late
• Having too many or too few open and active credit accounts.
• High credit card balance
• High balance on existing loans.
• Having too many credit applications​

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People often know the value of money, but not credit. Here's a reason why you should maintain good credit.

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Factors That Affect Your Credit Score

• Payment history on loans, credit cards and the number of late payments
• Credit usage rate
• Type, number and age of credit
• Overall debt
• Public records (i.e. bankruptcy)
• Number of recently opened credit accounts
• Number of inquiries on your credit report

Factors That Do Not Affect Your Credit Score

• Your race, color, religion, nationality, gender, sex and marital status.
• Age of the individual
• Current salary, occupation, job title, employer, date of employment or history of employment. (However, some lenders consider these information to come up with an overall decision)
• Individual or location of the organization