- Minneapolis Communities
- St. Paul Communities
- Twin CitySuburbs
- Local Area Index ALL Twin Cities
There are 1 blog entries for September 2012.
Tuesday, September 4th, 2012 at 3:35pm. 547 Views, 0 Comments.
Credit scoring was developed in the 1960s as a means to determine whether or not consumers were
likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.
There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of
financial responsibility and ability to pay back loans.
There are many quick tricks to improve the credit score. If a borrower has to pay a higher interest rate…