What Is Considered A Good Credit Score?

Your credit score is a number that represents your creditworthiness – the likelihood that you will repay a loan or meet other financial obligations. Lenders use this metric to determine whether you are eligible for a loan and, if so, what interest rate they will charge you. A good credit score indicates that you are a low-risk borrower, while a bad credit score means that you are a high-risk borrower.

Your credit score is calculated based on a variety of factors, including your payment history, the amount of debt you owe, the length of your credit history, and so on.

Your Equifax Credit Score is one of the most important factors that lenders will consider when assessing your creditworthiness. This score is based on previous analysis that predicts how likely an unfavorable event such as a default, court judgment, personal bankruptcy, or similar will be recorded on a credit report in the next year.

The most important factor in your score is your payment history – whether you have made your payments on time and in full each month. Other factors include the amount of debt you have, the length of your credit history, and any recent changes in your credit utilization. If you have a high Equifax Credit Score, it means you have a good track record of managing your credit responsibly and are considered a low-risk borrower. This can give you an advantage when applying for credit, and can help you get approved for loans with better terms and rates.

On the Equifax scale it classifies credit report users as follows:

• Below average  – There is an above average chance an adverse event will be listed on a Credit Report in the next 12 months.
• Average – There is an average chance an adverse event will be listed on a Credit Report in the next 12 months.
• Good – The likelihood of an adverse event not being recorded on your Credit Report in the next year is lower than average. The chances of no negative events showing up on your Credit Report in the following year are greater than average.
• Very Good – It is unlikely that a credit event will be reported on your Credit Report in the next year. To put it another way, the chances of no negative events showing up on your Credit Report in the next year are more than two times better than normal.
• Excellent -In the next year, an unfavorable event is unlikely to be recorded on your Credit Report. In other words, the chances of no negative events appearing on your Credit Report in the following year are more than 5 times better than those of the average population.

 Equifax updates the credit-active population scores on a regular basis, and changes in the population and economy are reflected in Equifax Credit Score ratings. The Equifax Credit Score is utilized in real life by lenders in a variety of ways that are not mentioned on the Equifax Credit and Identity site. Some lenders may accept your application while others might not do so because each lender utilizes their own lending criteria and polices, as well as their own credit scores.

Are you tired of being denied credit? Do you want to start clear credit history process but don’t know where to start? Clear Credit Solutions can help. We offer a free credit file assessment so we can get an idea of where you stand and what needs to be done to clear credit history. Our credit repair team is experienced in removing negative listings and defaults from people’s credit files, so contact us today if you want to start improving your financial future!