We all are quite aware of the credit score and strive hard to maintain a good score. Do you know an ideal credit score? A good credit score lies between 700 to 800. Hence, those who are looking for credit cards should have the required relevant score.
Further, we have seen many people who struggle a lot to get their first credit card. As we know the credit score is prepared based on the performance of your loan hence you need to maintain your loan repayments always on time. The score becomes higher if you have paid all your bills on time.
Also, we know, paying bills on time is not feasible for everyone. This is the reason they have to face penalties and their score goes down. See the ways to know your fair credit in credit cards.
The Credit Card Score is Divided into 3 Categories
- Good Credit Card (If your score is within 700-800)
- Fair Credit Card (If your score is between 550-699)
- Poor Credit Card (If your score is below 550)
These categories are completely dependent on the performance of your financial account. If you have paid all your bills on time you will have good credits. Those who fail to make repayments of the bills on time once in a while, get fair credits. People who did not pay any of the installments on time or lost somewhere before paying the full amount, get poor credits.
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Also, your credit score decides the trust factor. As we know through credit cards, we get a loan from lending institutions hence we must have their confidence and trust. The lender will trust you easily if you have fair or good credits on the cards.
There are so many financial websites from where one can easily check their credits on the credit card. Also, the issuer will also have the provision to check your credits. Hence, if you need to know your credit score, get in touch with the banks or the respective lending institution. They will share the exact score with you.
If you maintain good or fair credit on the credit cards, you are liable to get so many rewards and other benefits. These loyalties are only given to reliable customers. From here you can estimate the worth of the credit score.
Do You Know the Founder of the Credit Score Model?
FICO (Fair Isaac Corporation) is the one who has brought the concept of credit score. The scoring system is followed by the maximum financial institution to calculate the credit score of a person. Moreover, there are other systems as well, that allow you to calculate the credit score but the FICO score is the one that is used more commonly. All your debts are considered under this system in order to generate the actual credit score.