What is a good credit score? Do you aspire to have a good credit score throughout your life? The answer to this should be yes because this is one of the major designing factors while you borrow money on getting a low-interest rate. The lender usually decides on deciding the factors for granting the loan. Sometimes the borrower even fails to satisfy those factors lacking a good credit score. There are majorly two kinds of credit scores that are issued by Fair Isaac Corp and the VantageScore.

Let us assume, you have an exceptionally good credit score being 800-850, the percentage of people who can fall under this category is 19.9% and the applicants with this score can procure better than average lenders promising them with good loans. If you have a very good credit score people, who fall fewer than 18.2% applicants can receive better promotions on loans and mortgage. Nowadays, most of the credit owners fall under good credit score which is 670-739 being around 21.5% people, and only 8% of these people in this particular score range are likely to get a loan but not good lenders can come in at times if you are unlucky. Applicants with a credit score of 580-669 which is just a fair credit score have raised to 20.2%, and you cannot be considered as a subprime borrower at all. Now the worst credit score which is 300-579 people falling under 17% the borrowers on defaulting the payment should require paying a deposit of applicants with this rating not being approved for credit at all.

Borrowers with a 0% balance transfer offers will go with strong credit scores. The best part of maintaining a good credit score is always getting a loan with a lower rate of interest. Hence you have to pay less over years of repayment. Imagine getting a fixed mortgage for 30 years and you are getting on $300,000 then you can pay off with as less as $90,000 for a lifetime, and that is if you do not manage to get a bad credit score meanwhile. If you can’t maintain the exceptional good credit score, go for a good credit score with one score in mind to monitor over, and it also gives you a chance to monitor the progress over time. The basic factors that influence a good credit score are payment history, credit utilization, the length of credit history, mix of accounts and new credit inquiries. The only focus while making the repayment of debts is at least the minimum amount but on time which could be 10% or 30% of the total credit amount.

In the United States, the credit reporting agencies collect all the information about a borrower’s financial behavior. This is procured after having a tie-up with companies that offer financial products and services like ATM cards, credit cards, loans, mortgage, etc. These institutions are only bothered about the amount you have borrowed, the repayment with the interest rate, and the time delay of your repayments. The companies that are in this business are Experian, Equifax, and the TransUnion. The importance of calculating a credit score is major to understand how trustworthy the borrower could get be it even $5. When a bank and three borrowers are involved for a loan, there should be some criterions to understand how to determine a trustworthy borrower’s and decide on loaning the money or not. That is the main purpose of why a credit score should be maintained.

In the United States maintain a credit score even affects the decision of a person on getting married to the other person. This lets the spouse irrespective of the gender deeply understand your behavior in handling the finances. These days 30% of women and 20% of men are not interested to marry a person with a bad credit score, let us face the fact that, it is risky.