A credit rating is a simple number that many lenders use to determine if they give or will not give a loan or line of credit for consumption a person. A credit score is affected by a number of factors, some of which are controllable, others are not. Many lenders receive two or more reports from the applicant, details may vary between organisms. Opinions differ on what credit agencies is the best option or the more accurate for requesting credit. In many parts of the world scores are used to endorse the loan requested by a client. This score occasionally is standardized as a number between 300 and 900, which more or less approximates to the risk posed by an individual to a lender at the time of payment.

A score of 300 is considered a very high risk, while 900 indicates that practically the client does not represent any risk with the credit payments, the degree of reliability that an applicant represents with their payment habits in previous requests. This score is calculated based on the percentage of total loans and the loans history, while someone has had open lines of credit (15%), types of credit lines that has (10%), the size of strokes of lines of credit (10%), and the number of overdue payments (35%). These are the arguments that are taken into account in considering an applicant’s credit and render their qualification. As a general rule, a score of around 500 credit is high enough risk to which many lenders will refuse to grant a credit line, and those who grant it punished the borrower with high interest rates and conditions of payment. An above 850 credit rating will give the lowest rates of interest and a very small down payment. A credit of more than 650 score is good enough to obtain favourable conditions and they will almost always be accepted for new lines of credit. Many organizations offer online access to credit rating and credit consultation. These sites offer reports major study of credit bureaus, offers details why a rating may be low and provide suggestions on how to improve it. This access to information of a credit rating has led to the emergence of many forums and communities online in which members will encourage and help each other in the management of their credit ratings. Written by: Carlos Andres Perez original Autor Bernal and source of the article