rivervalleyloans
www.rivervalleyloans247.com/Your credit score is extremely important when it comes to qualifying for a personal loan as well as what interest rate you receive.
When lenders evaluate your loan application, they want to see that you have a history of paying off your debt. Because your credit score is the primary indicator of your debt and repayment history, it is a key factor in determining if you will qualify for a loan and how much interest you will have to pay.
The most commonly used credit score system is FICO, with scores ranging from 300 to 850. Your FICO credit score is determined based on your payment history, total outstanding debt, the length of your credit history, your credit mix and any new debt you’ve taken on. Payment history is weighed the most heavily in determining your credit score, along with your total outstanding debt.
Generally, borrowers need a credit score of at least 610 to 640 to even qualify for a personal loan. To qualify for a lender’s lowest interest rate, borrowers typically need a score of at least 690.