600 Credit Score

600 Credit Score

Does your 600 credit score bother you? Well, certainly, it can always get worse than that. Nonetheless, a credit score of 600 might expose you to higher interest rates.

Given the current state of the economy, and the hesitancy of lenders, having a credit rating at this level will most probably cause your rejection for a new loan. Or, perhaps, you may still be approved, but not without a price. You are likely to pay much higher interest rates than those with a higher score.

Good news! It is certainly possible for you to increase your credit score at no cost, and you can do it all by yourself. But the down side is that it can’t be magically done overnight.

A credit score of 620 is about the lowest you can possibly go and still get prime rates. Notice how little the difference there is between 620 and 600, but how huge the impact is. Simply put, the worse your credit score, the higher the interest rates and fees you pay. A slightly higher credit score would save you money, and the amount is no laughing matter.

Your FICO (Fair Isaac Corporation) score is your credit score. There are many considerations to come up with your credit score. These includes things such as your payment history, how long you’ve had credit, the amount of money you still owe, the number of open accounts you have… the list goes on.

Improving Your 600 Credit Score

Your 600 credit score is a telltale sign of your lifestyle. It tells any creditor a lot about you. Lenders base their decisions to grant you a loan, or not, in large part on your FICO score. So it’s kind of a kicker to know that even your interest rate is going to depend on it. And, it’s even possible you would need a co-signer or have to pay a deposit.

So, if you want to enter a better situation, you should be focusing your attention on increasing your credit score.

You could do so, and earn extra points by ordering your credit report and scanning it for any errors you see. Approximately 40 percent of all credit reports have some sort of error in them. Since your credit information is manually submitted by humans, mistakes are certainly possible.

The thing is, there are companies who charge fees in order to improve your credit report. Although some are legit, some could put you in hot waters. One thing that some suggest you do is to lie about the reports on your credit file. They may advise that you pretend that you didn’t default and weren’t late with payments. But, and this is big, if there is adverse information filed against you and it is true, you cannot say it isn’t. Doing so is fraudelent and carries heavy penalties.

It is much better to clean up your credit habits. Learn how to manage money and become more responsible with it. Don’t let the fear of your debt or bad credit overwhelm you. Get the facts straight, and devote yourself to raising your credit score. Then, soon, that 600 credit score will be history.