What is a credit score?
Your credit score is a number ranging from 300 to 850. Credit bureaus develop this ranking system based on a sophisticated algorithm that weighs and evaluates different behaviors in your credit report. However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting. This information in conjunction with your credit history, and credit score can impact whether or not you are approved for a mortgage, car loan or credit card and what interest rate you'll pay.
Lending Industry Standard
Lenders believe a credit score the best predictor of the borrower's repayment behavior. There are three major credit bureaus Equifax, Experian, and TransUnion. These agencies generally use similar algorithms developed by the Fair Isaac Corporation (FICO) to evaluate the credit information they have on file for you. Most lenders use your FICO score to determine if you will be approved for a loan and what interest rate you'll be offered. Borrowers with high credit scores are usually offered lower interest rates, while those with lower scores may still get credit but will have a higher interest rate.
Lowering your interest rate
We at Chapman Chrysler Jeep Dodge and Ram of Horsham understand that a divorce, foreclosure, and re-possessions can have a negative impact on your credit score. We have a staff of credit analysts that understand what lenders look for when determining whether a borrower is approved and at what rate. If you believe your interest rate is too high or another organization couldn't help you, please let us assist you in getting the financing you deserve. We've helped numerous people rebuild their credit in a fair and affordable way.