YEG Auto Credit Helps Edmonton, Cold Lake, Fort McMurray, and Calgary Understand Credit Scores
Credit scores are needed to buy a home or car, receive a loan, rent an apartment, and more. Your credit score ranking determines loan interest rates, which can be costly or inexpensive. If you need help understanding credit scores, then come to YEG Auto Credit near Edmonton, Cold Lake, Fort McMurray, and Calgary. We help drivers get into a car of their own, so they can build or rebuild their credit scores through financing.
What Is A Credit Score?
A credit score is a three-digit number. The higher the score, the better your credit is. It determines the amount of risk a credit bureau receives by admitting you a specified amount of credit. The FICO credit score is the most used source for determining risk with scores ranging from 300 to 850.
What Determines My Score?
There are a variety of aspects that factor into your credit score. If you have never opened a credit card before, purchased a home or a car, then your first credit account opening goes into a young credit score history.
If you have an account or purchase, then you can expect payment history to be the largest factor in determining your score. About 35% of your score is based on your payment history, so this is what credit bureaus look at the most. Next, your score is determined by how much debt you owe (30%). How long you have had a credit history with a specific account and account activity makes up 10% of your score. Another 10% of your score considers the types of credit you have—installments or revolving or both. The last 10% looks at the new accounts you have opened.
Other Important Factors To Know
By law, you have the right a free credit report annually, so you always know where you stand. However, keep in mind that a credit score isn’t free. Your credit report simply states activity and the score you have acquired. Using a FICO score estimator will be around what credit bureaus see you as.
From time to time, it is useful and important to track your credit score to make sure the activity looks normal.
The biggest factor to having a good credit score is making your account payments on time. This can save you large amounts of money overtime.
Need Help With Your Credit Scores? No Problem.
Come to YEG Auto Credit today for credit scores assistance near Edmonton, Cold Lake, Fort McMurray, and Calgary. We can solve no credit or bad credit by providing financing for a new or used car. Contact us online today about any questions you may have.