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Everything you need to understand credit is here on this page.

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How Does Credit Work?

Everything you need to understand credit is here on this page.


At an early age, we contemplate the benefits that turning 18 could have. Some go to say that we could smoke, allowed to drive by ourselves and can head to a club, but there's a factor that many miss that honestly drive the direction of one's life and that is that once a child becomes 18 they are independent adults. Meaning credit becomes a habit to maintain in order to have stability. In most cases, teens don’t have the financial knowledge of how to manage credit, this in turn drives their credit down, but that’s why we are here.


Why Is It Important?

Credit could be a beneficial or gloomy bag of rocks that one carries. Your credit score has enormous weight on your life. Having a good credit score could allow for lenders to give you more money. Also having a good credit score allows for lenders to trust people since they know that you have maintained a steady financial history. With having a good credit score one could already think about buying a house or even a brand new car with lower interest.


The opposite could happen with a lower credit score, the lack of financial freedom is basically the outcome. The lack of being able to purchase a house, have an affordable phone bill and even purchasing a car becomes tedious because you have proved to be lacking financial knowledge of yourself, meaning you are putting the lenders at risk. Understanding the credit score ranges is important in order to calculate if you reside on the good side or the bad side of the spectrum.


Credit Ranges

Let say today you walk in into our office and we pull up your current credit score. This credit score we just pulled out from the system comes from FICO (Fair Issac and Company). The majority of the time credit scores are used from FICO since most lender decisions use it in order to make financial decisions on the people they are lending it to. Down below are the accepted ranges used by lenders:


1.) 300-549 - Bad

2.) 550-649 - Poor

3.) 650-699 - Fair

4.) 700-749 - Good

5.) 750-850 - Excellent


How To Improve

There are many ways of to improve your credit score. And all the qualifications on how to maintain a high credit score and how to improve if you started at declivity will be shared in the next article. Linked about on the navigation bar under credit score.