San Diego, CA (PRWEB) January 28, 2014
LoanLove.com, a borrower advice website that helps borrowers to find loans that they will love, recently released a new guide for credit repair in 2014 which gives some tips on how borrowers can improve their poor or average credit scores so that they can enjoy the best loan deals. As a trusted destination for current news and expert loan advice, Loan Love empowers homeowners with first class knowledge, valuable resources, and connections to the top rated industry professionals. The new guide, titled “What’s Considered An Excellent Credit Score? (And How To Get There)” continues to provide borrowers with in-depth information, presented in an easy to understand way.
The article explains, “Put simply, your credit score is a measurement based on your payment history. Its purpose is to help lenders determine how likely you are to pay back a loan. Your actual credit score is tabulated using a formula created by the Fair Isaac Corporation, hence the name FICO score. What does a credit score mean? You may wonder how much of an impact your credit score can have on your life. In short, your credit score can greatly impact many aspects of your life. For example, a good credit score will mean you qualify for the best loans in regards to interest rates and loan terms.”
Loan Love goes on to say, “Because interest rates can greatly affect a loan payment amount, the interest rate will greatly affect how much money you have to spend each month for your home, car or other important items. This in turn will greatly influence how much money you have available for other things in life, which means overall your credit score can have a huge impact on your lifestyle.”
Next, Loan Love takes a look at the different credit scores and explains what having a certain credit score would mean for a potential home loan borrower. It briefly explains each credit score bracket, starting with credit scores below 620, which is considered a “bad” credit score. Loan Love explains, “A credit score of 620 or lower places you in the “sub-prime” borrower category. If you are considered a sub-prime borrower, you will likely pay 3 percent more on a mortgage loan than someone with excellent credit and will likely pay double-digit interest rates on a home equity loan or a line of credit.”
It reviews each of the subsequent credit score ratings and ends with credit scores of 720 or above, saying, “If you possess a credit score at or above 720, you have an excellent credit score. This means you will be able to acquire a lender’s most favorable rates and you are in the position to shop around thus finding the best loan for you in regards to term, interest rates and other factors.”
The article then gives some very good tips for those who are trying to improve their credit before applying for a loan. For these tips and other information on credit scores, please click here to read the full article on LoanLove.com.