How credit score works

In a world dominated by borrowed money and ever accumulated debt, a credit score is essential in dictating your viability in terms of applying for loans or credit. How a credit score works is by gauging a score of 0 – 999. 0 – 486 Is an indicator of a poor credit score whereas 767-999 is classified as an excellent score. A favourable score to have would be between 614 – 681, which bridges between “favourable” and “good”.

This score is calculated by all payments you’ve made in the past, your current outstanding debt and how it compares to borrowers. It is an incredibly accurate representation of your income, expenses, employment history as well as your affordability assessments. The reasoning for the scoring system is to dictate how you perform amongst fellow consumers. Always remember that the higher your credit score the more likely you are to receive the loan or credit you are applying for.

Is credit score is lacking? There are a few ways to strengthen it. Credit-builder loans and secure credit cards are ideal for anyone with a low credit score. Keeping up to date with your payments as well as ensuring all current and old accounts is settled and up to date. A quick effective way of building up your score is through the use of a great rewards credit card.

At Ayoba loans, we know the frustration one can experience through trying to fix their credit score. We believe that everybody has a chance at financial freedom; therefore our services can strengthen your name and get you back on your feet.

If you have any more queries as to how credit score works or how we can make it work for you, contact us today.