Credit score matters a lot, and it’s more than just a score. Having a good credit score makes you eligible for exciting offers like getting a business loan, credit cards, and a low rate on every purchase made.
If you are a business owner, you won’t want to mess around with your credit Score because even suppliers will evaluate your credit score before business collaboration.
If you are starting up your small business, it’s without a doubt that you might need a lot of capital. It’s the capital that will promote your small business from its development ranking.
Even if you try applying for a business loan, the lender might have a hard time evaluating your business record because of new business with no history. During this period, they might switch over to your credit to determine your eligibility for the loan offer.
But when you have 700 personal credit scores, it will increase your chance of getting a loan application approved. In the eye of the lender, your 700 personal credit score shows a lower risk of repayment in the future.
Your credit score can be referred to as FICO score according to the reporting agencies like Equifax, Experian, and Transunion who monitor the fluctuation of your score.
Each of these agencies has their rating depending on your credit performance. Before you can consider your credit score to be good, you need to have a good credit score on all three agencies. Once you have a good score of over 700 from these agencies, you will be eligible for massive financial benefits.
Is 700 a Good Credit Score?
You have a credit score that’s either at 700 or over 700 will always bring benefits to your business. Even your loan applications will be fast accepted by any lender is the help of a good score.
A credit score above 700 can be considered as a good credit score, while a credit score above 800 is excellent. A good credit score will give you better lending opportunities because it’s what creditors often check before approving any loan offer.
The credit score is widely used by banks, lenders, mortgage, and even car dealers in finalizing each purchase. With the credit score, they can decide to offer you any credit card or loan, including the amount you will pay as interest. Many alternative lenders like like OnDeck, PayPal Working Capital, or Kabbage are ok with credit scores less than 700.
What affects your credit score?
There are several factors that can affect your credit base on the issues on your credit report. Here are several issues that might affect your credit score;
- The time you take while repaying each loan you took affects your credit score, such as late payments.
- The amount of loan repayment you own to lenders affects your credit score.
- Your records can affect your credit score, such as Bankruptcy.
- It depends on how many credit account you have opened.
Why you need a 700 credit score?
Even if you have a bad credit score, there are several ways in which you can increase your credit score. Most people try disputing all the negative records from their reports. By removing all the adverse history from your accounts, it will help in rebuilding your credit report faster.
Once you have removed all the traces of the bad credit from your record, you might notice that your FICO score is stable and your credit scores up to the standard score. Sometimes you may get a credit report of what you did not expect which might be low.
During this period, you need to contact the reporting agencies to verify the report evaluation records. You have to forward a letter to the credit reporting agencies which might take up to 30 days before you get a response depending on your credit history.
Understanding the reason why you need a good credit score is essential, especially when you when it comes to getting a house. You will need a good quality score because you won’t qualify without it. It will affect your spending value, increasing it to be more than the average pay.
For example, having a bad credit score of about 500 will affect your spending value every time. Assuming you move to a new apartment, you will need to spend more money on deposit even when you turn your utilities on; you will have to pay more.
Having bad credit can be tiring, especially when you need to pay more on anything that you want to get. But when you have a good credit score, you can get amazing prizes or rewards like travel tickets and much more. With a good credit score, you can get a loan, mortgage or enough fund to start a business.