Personal Finance and Money Management

A few days ago, a client came to my desk asking, “A Beacon score? What in the world is that!?”

This client has spent the last few years building his credit through responsible use of student loans, no interest credit cards, and a car loan. He now wants to capitalize on record-low interest rates and purchase a home, but he recognized that by ignoring his BEACON Score he might have missed something that could potentially cost him tens of thousands of dollars over the life of the loan.

Credit scores are a report card for any financial interaction we have, be it applying for a job, an apartment rental, credit cards, or student and home loans. On

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Knowing the importance of your credit score in all the workings of the lending community, many applicants wish to know the different credit score ranges which they should maintain to get a decent rate of interest on car loans. For beginners, credit score is the rating maintained by credit bureaus which keep track of all the financial dealings, borrowings and payments of every individual and they rate the history of the payments depending whether they went well or bad. The right credit score to get approved for car loans a few years back was around and more than 610. Considering the highest one could go was 700, this score was seen as quite a high.

However, in those times, competition was less and a lot of people had high credit score.

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Today I’m going to briefly explore and talk about what makes up your credit score. When working with hard money lenders, what your credit was did not usually make much of a difference. In the market today, on the other hand, a lot of things have changed, and even in the hard money realm, your credit score is playing a bigger role in lending decisions.

Most people are very under informed and uneducated when it comes to all of the various factors that go into their credit score. We have made a quick basic breakdown on credit score factors:

35% of any credit score comes from how you have made payments. This is the biggest of the credit score factors, and the most recent payment history is the most important. T

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According to the Free Financial Dictionary, credit score is defined as,

A credit score is a numerical expression based on a statistical analysis of a person’s credit files, to represent the creditworthiness of that person, which is the perceived likelihood that the person will pay debts in a timely manner. A credit score is primarily based oncredit report information, typically sourced from credit bureaus / credit reference agencies.

In laymen’s terms, a credit score is an at-a-glance measure of risk for banks. The higher the number, the less risky you are to lend to or be given the ability to charge purchases to a line of credit.

In the USA, there are three main institutions that calculate this figure for you: Equifax, TransUnion and Experian. Eac

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