Knowing your credit profile status is crucial! You absolutely need to know your credit score and what it means before you start looking for a new car. Your credit score will determine the conditions of the sale – especially when it comes to interest rates, incentives and terms of a loan. Below are the main credit categories. Where do you think you stand?
Good Credit.
This means that you have made good on every credit bill you have had. There is no history of missed payments, late payments or bankruptcy. If there is a “bad mark” on your credit history, such as bankruptcy, it hasn’t been in the past three years.
A lot of people with Good Credit status also have some sort of installment credit payments, like a car loan or mortgage payment.
Fair Credit.
If you have a really good credit history for the past couple of years, but admit that you may have had an occasional late payment, then you may fall into the Fair Credit category.
Even if you have had major blows to your credit, including repossession or bankruptcy, as long as it was over 18 months ago you may still fall into this group. Consumers with Fair Credit should have substantial good revolving credit within the last two years.
Situational Bad Credit
If you got into some credit problems because of a major event or disaster, such as, divorce, illness, or sudden unemployment, you probably fall into this category characterized by a significant situation or life changing event that leads to debt.
No Credit or Bad Credit
If you have bad credit it could have accumulated a number of ways: unpaid credit card bills, bad checks, outstanding medical bills, and unresolved repossessions dating ad far back as two years or later.
You could also have no credit at all. Maybe you simply have never applied for any kind of credit.
Poor Credit
We strongly hope you are not in this category, but know that many people are. Consumers with poor credit have a long term history of bad credit choices. They don’t pay their bills for whatever reason, resulting in delinquent accounts. They may even have multiple bankruptcies under their belt.
There you have it. Which category do you fall into? Creative Finance is here for you, regardless of your credit status. We would love to talk to you! Contact us at (877) 254-6855 today!
