How to qualify for the best loan interest rates?
Make sure you have a good CREDIT SCORE.   Understanding how your credit score is determined is also key.
What is a credit score? <ul><li>A credit score number is often called a FICO score.  </li></ul><ul><li>Many lenders also u...
What are the determining factors? <ul><li>Age of your credit file </li></ul><ul><li>Delinquencies </li></ul><ul><li>How mu...
What does your score mean? <ul><li>If you have over 800, that is almost perfect. You will qualify for the best rates. </li...
Credit Score (cont’d) <ul><li>620-679 is OK credit, though it won’t qualify for best rates. </li></ul><ul><li>580-619 is b...
Credit Score (cont’d) <ul><li>500-579 – if you fall within this range, it is likely a result of a credit card charge off, ...
If you would like to find out how to get your credit score for free, please visit: www.TheFreeAnnualCreditReport.com
Upcoming SlideShare
Loading in …5
×

How Credit Scores Impact Loan Qualifications

297 views
270 views

Published on

How are credit scores are determined and how they will affect your ability to get good interest rates.

Published in: Self Improvement
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
297
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

How Credit Scores Impact Loan Qualifications

  1. 1. How to qualify for the best loan interest rates?
  2. 2. Make sure you have a good CREDIT SCORE. Understanding how your credit score is determined is also key.
  3. 3. What is a credit score? <ul><li>A credit score number is often called a FICO score. </li></ul><ul><li>Many lenders also use other third-party credit scoring systems such as NextGen, and VantageScore. </li></ul><ul><li>These are all used to evaluate the creditworthiness of a borrower. </li></ul>
  4. 4. What are the determining factors? <ul><li>Age of your credit file </li></ul><ul><li>Delinquencies </li></ul><ul><li>How much available credit is used </li></ul><ul><li>How many requests have you made for loans and/or credit cards </li></ul><ul><li>Mix of credit -unsecured and secured </li></ul>
  5. 5. What does your score mean? <ul><li>If you have over 800, that is almost perfect. You will qualify for the best rates. </li></ul><ul><li>720-799 is considered great - under 30% of population is in this range. </li></ul><ul><li>680-719 – good credit. Will still qualify for most loans. Interest rates, however, may be a little higher. </li></ul>
  6. 6. Credit Score (cont’d) <ul><li>620-679 is OK credit, though it won’t qualify for best rates. </li></ul><ul><li>580-619 is below average. You will have a hard time securing financing and interest rates will be high. </li></ul><ul><li>Many consumers in the 580 range are considered subprime and have to work with bad credit lenders to secure loans. </li></ul>
  7. 7. Credit Score (cont’d) <ul><li>500-579 – if you fall within this range, it is likely a result of a credit card charge off, foreclosure, or even bankruptcy. </li></ul><ul><li>Below 500 – forget getting a loan or securing a mortgage. You need to work hard on repairing your score! </li></ul>
  8. 8. If you would like to find out how to get your credit score for free, please visit: www.TheFreeAnnualCreditReport.com

×