What is a bad credit score?
A bad credit score can be the reason that you get denied lines of credit, get high interest rates, be turned down from a job, be turned away from renting a house or apartment, and also get high insurance premiums.
Credit scores range between 300-850. 300-640 is considered to be a bad credit score and only secured loans are given to people who have a score in this range. With a bad credit score like this it will be very hard to get approved for any type of credit account. Bad credit can have an effect on your overall life, not just your financial life.
640-680 credit score is considered to be fair, but people with scores in this range also run the risk of being denied loans, and if they do get approved for a loan they will get high interest rates on their loans.
680 and above is where you want your credit to be. You won’t have to worry too much about being denied a loan because of your credit, and you won’t have to worry about high interest rates.
How to raise your credit score
Thousands of people are considered to have bad credit based off of what is on their credit reports. A lot of the time there are derogatory items included in your credit report that are false and don’t belong to you or are just inaccurate listings. Fortunately the law provides a way for people who are being unfairly labeled as having “bad credit” to dispute the credibility of the derogatory items on their credit reports. By contacting the credit agencies you can get these negative items removed from your credit reports. You can do it yourself, or you can hire companies like us to get them removed for you.
Here at Credit Innovation Group we help people clear their negative history (such as late payments, collections, charge offs and bankruptcies) on their credit reports and help them raise their credit scores finally freeing them from the trap that is bad credit.