Credit scores, also known as credit ratings, are generally based around your borrowing and payment history. Why is a credit score important? Because it’s one of the factors that banks and lenders look at to determine whether your loan application should be approved, along with how much they’re willing to lend you. Depending on your credit score, this could impact the loan terms, and the interest rate that you’ll be presented with. Protecting your credit score is extremely important, for a number of reasons, one being that it can impact your future.
At MediPro Capital Finance, we take our medico customer's credit ratings and financial situations seriously. We aim to find the best financing solutions for their needs, with great loan terms and the lowest rates available on the market. If you’re asking yourself “what is a credit score?” keep reading our informative blog below.
What is a Credit Score?
A credit score is a three digit number generally between 300 and 850. This number is created using a complex algorithm that takes into account your credit history, including how often you’ve paid your bills on time, how much debt you have, the age of your accounts, and new credit. The higher your credit score is, the less risky you are to lenders and the more likely you are to get approved for a loan with favourable terms.
Credit scores are important because they help lenders determine how likely you are to repay a loan. Your credit score is also used to calculate your interest rate. The higher your credit score, the lower your interest rate will likely be on a new loan
What is a Good Credit Score?
Your credit score is one of the most important numbers in your financial life, so knowing what is a good credit score will come in handy. It can affect everything from the interest rate you pay on a loan to whether you can rent an apartment or be accepted for a home loan. So what is a good credit score? The answer to that question depends on who you ask. Different lenders have different standards, and even the same lender might consider a specific score to be good depending on the product you’re borrowing money for.
Generally speaking, though, a credit score in the high 600s or above is considered good. Scores in the 700s and 800s are considered excellent. If your score is below 600, you may have trouble getting approved for a loan or may find yourself paying higher interest rates.
Protecting Your Credit Score
There are a number of things you can do to protect your credit score. One of the most important is to make sure you always pay your bills on time. You should also try to keep your debt levels low and avoid opening too many new credit accounts at once.
Make your debts a priority and get them paid on time: The most significant aspect in calculating your credit score is how you've repaid previous debt.
Only open a new credit account when you really need it: The number of new credit accounts you've opened, and the amount of times lenders have reviewed your credit account impact 10% of your score. Another 15% of your score is determined by the length of your credit history. When you add a new account to the mix, the average age of your credit history drops.
Don't co-sign a loan: Unless you are ready and able to make the payments later if required, don't co-sign a loan for anybody – not even a family member. A missed payment might harm your credit score if you do not pay it.
Keep your personal information safe: When sharing your tax file number, birth date, credit card numbers, and other sensitive information, be extremely cautious. Use secure websites and take precautions when talking on the phone. Don't leave records with this information out where anyone can find them— shred them as soon as possible.
Be wary of inaccuracies on your account: Both the credit reporting bodies and the businesses they work with are legally required to ensure that your credit information is up-to-date and accurate. If you find that the data on your credit file is incorrect, the first thing to do is notify the company that claims to have
Remember to always be diligent: Maintain the excellent credit score that you've worked so hard to build, it’s worth it.
Credit scores can be important for a number of reasons, but one of the most important is that they help to protect your financial future. If you're a medical professional wondering what you can do for protecting your credit score, and you’re looking for a specific medical loan, MediPro Capital Finance are here for you. As a medico, there are a number of benefits on your side, meaning it’s less likely that you won’t be approved for the loan you’re after. Our team will work closely alongside you, and with an array of quality lenders to get you where you want to be.
Contact MediPro Capital Finance Today!
Are you looking for loans such as home loans for medical practitioners or more? At MediPro Capital Finance, we will help you get the home loan you need at market leading rates. Contact us today on 1300 375 626 or through our online form to learn more about our services and how we can help you secure the right loan for your future.