Is A 680 Fico Score/beacon Score/credit Score High Enough?

Your credit score is one of several factors lenders use in determining whether you should be approved for credit

. Other factors include income, employment stability, assets such has home ownership and how much debt you are carrying relative to your income. Every lender has their own risk tolerance as well. Some lenders may accept lower scores on products they are aggressively promoting such as certain credit cards whereas others may not be willing to lend to prospects that are a high risk.

Your credit score (also referred to as beacon score or fico score) is maintained by three independent reporting agencies who receive input directly from creditors regarding your payment habits. Collection agencies also report arrears on accounts such as cell phones, fitness memberships, utilities, etc., which can also negatively impact your credit score. Every time you apply for credit it also influences your score. Sometimes store loyalty cards are actually providing credit and when you apply your credit score will be impacted. In almost every instance where you authorize a credit check, your rating will be impacted.

Given all of these factors, it is possible to assume when you approach your bank for a line of credit or loan that you will be approved based on your income and stability only to find out you have been rejected. Once you have been turned down credit, your credit report will reflect the "inquiry" and impacting your credit score. For this reason, it is important that you do your research in advance.

While major banks may not approve a loan for individuals with a credit score as low as 680, smaller lenders will be happy to have your business. While other lenders may approve financing on higher risk prospects, they may also cost more in interest and fees. Understanding your credit will give you the leverage you need to negotiate better interest rates and determine which lender will give you the best deal under the circumstances.

Checking your credit score will provide you a "score" but what you really need is to understand how lenders will view your entire financial profile. There is only one service that provides a comprehensive review of your credit report profile that you should consider before financing a major purchase or obtaining credit: www.trueassess.com. This service reviews all of the factors that lenders consider beyond just your credit score, emphasizing the strengths and weaknesses of your financial profile. With this information, you will have the information you need to better your chance of approval and negotiate better deals.

by: Courtney Jewell-McElroy

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