What Is Good Credit – Learn About The Credit For Loan

Generally, the term Good Credit is considered to be a credit score of 680 and above. When reviewing a credit file most lenders look at more than just the applicants credit score, they consider Payment History, Age of the accounts, number of open accounts and the types of accounts the applicant currently has open.

Florida Title Loans will check the credit report to offer you car loan. Though the interest rates are high, but there are the flexible loans available. There is the availability of best loan amount with the good credit to buy a car. The amount is available directly in the bank balance of the individuals.

Generally credit score is just one factor in a lending decision Most lenders also look at whether;.

The applicant has any bankruptcies, charge offs, liens, etc. in the past and how long ago those were Are there slow pays on the report. These are usually accounts paid later than 30, 60, and/or 90 days. Have there been collections reported. the lender will take into consideration if those collections are paid. they also take into consideration if the collections are medical in nature. What type of accounts does the applicant have, the number of open accounts, and the balance being carried on credit cards and other types of revolving credit as well as instalment accounts (auto loans), and real estate or mortgage accounts.

Once you have applied for a loan, whether you will be approved for a loan depends on certain ratios

Debt-to-income ratio – lenders will calculate things like your rent, mortgage, car loans, credit card payments, student loans and then compare that to what you make before taxes. The lower the ratio the better. Housing ratio – this is similar to debt to income ratio except it only looks at your housing costs such as rent and/mortgage. Loan-to-value – lenders will also look at the amount of the loan you want and compare it to the value of the collateral you put up.

In most situation lenders cannot simply underwrite a loan using the credit score alone because of regulations. However, it is not uncommon for banks and other types of lenders to have a matrix to determine loan costs, interest rates and terms if you are approved. This is where your credit score typically comes in. In general, the higher your score the lower the interest rate charged.