Some credit card offers are available from the stores, corporations or big businesses that are dealing with the selling and financing of the furniture goods and products. The credit score plays in integral role in getting you the necessary credit card, its terms, and conditions, the interest rate that you will be making on your credit payments. The credit score also identifies the total amount or the highest amount that you can pay through credit.
If you have a credit score below 500, you might not be able to get your hands on some of the top grossing or famous credit cards that are provided by the furniture stores. Because the risk element that will be associated with your request to get the credit card will be high.
However, if you have a higher credit score such as 700 or above, you are in a comfortable position to acquire furniture goods and products that are costly and moreover, you will be given longer periods along with the lower interest rates on your overall credit value. It eventually decreased your overall cost over the total price. High income and on-time payments of the credit in the recent past can also help your cause.
Explanation of credit score ranges
It is important to know the category that you fall into when it comes to credit score for you to be aware. The range of a credit score can go from 300 to 850. Always remember that the higher your score, the higher the chances of you to qualify for a loan. There will also be instances where a financing company is okay with 650 scores, while the other is fine with a 750 score. It will all depend on the lender itself.
A lender or a bank will check your credit score if you qualify for the application that you are requesting. Here are some of the credit score ranges that you should know.
Bad credit score
People with a credit score below 579 is known as high risks. Foreclosures, poor payment history, and bankruptcies are the reasons why people fall into this category.
Good credit score
A good credit score ranges from 680 to 719. People with this credit score can expect approvals and interest rates that are better.
A very good credit score ranges from 720 to 799. People with this credit score is known to be small risks, and they often get loan amounts that are higher than usual.
An excellent score ranges from 800 and above. Financial freedom is expected to people with this score.
How are credit scores calculated?
The weight of each of the five categories are; 30% of amount owned, 10% is for the new credit, 15% accounts for the length of credit history, 10% is the credit mix and the last 35% accounts for the person's payment history.
The FICO score takes into consideration positive as well as negative aspects of the credit report. The percentage or the weight of any of the categories mentioned above may differ from a person to another depending upon the information available in the credit report.
The FICO score takes all of the information from your credit report. However, the banks or any other lending institution might look at your income, type of credit and employment history when you apply for a loan or mortgage.
Once a certain lender asks for a client's credit report, they can also ask for the Fico score. Other sources say that your Fico score will include 35% of your payment history, 30% of your credit utilization, and 15% as to how long have you been borrowing.
Furniture financing options based on credit score
Get to know more about the Furniture financing options based on credit score with the information provided below.
Most retail stores are offering store credit for furniture financing. In fact, they are offering these credit to people who have a fair score to excellent ones. But individuals who have a poor score can still apply for one for as long they provide the requirements needed for the store. Get to know more about it by reading the information below.
Your Credit Score
Since this is a credit store, they are not that strict when it comes to credit score. But you should know that they can sometimes damage your credit score since this is called a "hard inquiry."
Typically the credit limit is lower than expected, which is a good thing because you won't get tempted in purchasing things that you can't afford comfortably.