Subrime credit scores are intended to help people understand what chances they have to get this or that loan. The score is calculated on the basis of credit history. Fair Isaac Company (FICO) scores range from 300 to 850, with 300 being almost ruined credit score and 850 being incredibly high. 620 is a mark below which credit score is considered "subprime."
What is subrime credit score associated with?
First of all subrime credit score makes it very difficult for individuals to take out certain credit options, such as credit cards and loans. The reason for that is simple. Lenders tend to avoid individuals that don't seem trustworthy and reliable. The only way they can learn whether you
are trustworthy is by means of credit score.
What should I do if I have subrime credit score?
You can do with subrime credit score, because it doesn't ruin all your attempts to use credit options. Nevertheless, subrime credit scores are likely to bring about higher fees and smaller borrowing capacity, which reduces available financial options to nothing.
FICO credit scores, indicating the likelihood that a borrower will repay his debt, are thoroughly studied by lenders. Charge-offs, late payments, bankruptcies, outstanding collection accounts constitute negative loan history. Other more objective factors are length of credit, payment history, and number of credit lines.
Subrime credit scores should be improved for the sake of better credit standing.