Many people may not have a thorough understanding of finances, but MaxCash is there to lend a hand and arm people with financial knowledge. For instance, some people may be wondering, “What is a credit score?”
A credit score is defined as a number—used as a grade—to determine the borrower’s financial history. A credit score is used by multiple third parties, including lenders, to assess the risk of lending a person money. In short, it’s a report card that demonstrates the trustworthiness of someone’s handling borrowed funding.
But how does a credit score make up something like that? That’s easy—as credit history tends to warrant the number of a credit score. Here are a few ways that a credit score is impacted, and calculated into a number:
- Using a Credit Card: A credit card is one of the simpler ways that a credit score is calculated. All that “credit” from the card typically has a max limit, which is the amount that someone can borrow from the credit card company.
- Using a Loan: A loan (depending on the type) is usually more straightforward as it tends to be a direct way of borrowing money to pay off a debt, like a brand-new car.
- Using a Line of Credit: Like a credit card, a line of credit is usually provided by a firm or financial institution that expects repayment, and usually have borrow limits!
- Using a Mortgage: When buying a home, most people get a mortgage, which is basically a fancy way of borrowing money and paying it off in interest.
These types of financial products eventually plug out a score whenever they are used by someone. In short, a higher credit score indicates that a person’s current financial circumstances and their credit history demonstrate trustworthiness with borrowed money.
However, this means that a lower credit score demonstrates an unfavorable score for lenders and financial institutions. It proves that a person could be a potential risk when it comes to providing them with a loan, as they are more likely to be unable to pay it off, or default (worst case scenario).
With that in mind, a credit score can affect someone’s financial decisions in two ways. They could get approved for a financial product, which could come with a lower interest rate is the individual has a higher credit score. The second way is that lower credit scores may disqualify a person from a financial product or service completely, or even raise interest rates for a loan due to unfavorable credit history.
But what are some ways that someone could improve their credit history? MaxCash has every unique credit score covered on that! Here are a few ways that someone could raise that credit score:
- Pay Off Those Loans: Any loan a person may have means that it is already impacting their credit score! Increasing that credit score means paying the loan off on time! Avoid loans if a person knows that they may have trouble paying it off!
- Keep Balances on a Credit Card Low: For those that have credit cards, think of them as portable loans that are applied every time someone makes a purchase with them. Paying off the minimum every month is a great way to improve credit history, but also ensure that the credit limit on a credit card isn’t reached. Using all the credit available would lower a person’s credit score!
- Avoid Opening and Closing Accounts Quickly: For those eager in building their credit history, opening multiple credit cards and loans may sound like a great idea, at first glance. However, paying these things off in quick succession may be viewed as risky transactions on a person’s credit history that may turn off some lenders who don’t want to take any chances.
With all this credit score info on the noggin, what can MaxCash do? MaxCash can provide a free credit score based on a person’s credit history. Using our financial know-how and integrated technology, we can provide a person with a free credit score.
Although it may not be the exact credit score that a person is looking for, it is an estimation that many other companies have done in the past, like credit score calculators or credit score range estimators!
But even after all that is said and done, what else can MaxCash provide someone besides credit history knowledge? Well, they could also help people find a loan!
Why MaxCash Will Provide a Credit Score to Customers!
Now that MaxCash has described what a credit score is, the impact that could be made with someone’s credit history, and why a credit score is so important, see why MaxCash is one of the best ways to find a lender to work with.
Having one of the biggest networks of lenders out there, MaxCash has worked hard to create and establish strong relationships with several lenders throughout the country. These relationships didn’t happen overnight.
Through years of education on the financial market of loans, we have lenders that provide some of the following loan products that people tend to look for:
- Home loans.
- Car loans.
- Title loans.
- Small business loans.
And we are still working hard to establish even more lenders into our network every single day. Not only could we provide the education and research needed to help people to understand their credit history, we could also provide some possible lending options.
With a strong communication line and dedicated representatives, MaxCash wants to be every customer’s best friend when it comes to establishing that lending journey. Going at it alone can be tough—navigating those direct lenders could be a rough adventure.
Here are the things that a person should consider when comparing lenders:
- Interest rates.
- Lending policies.
- Lender requirements.
- Hidden fees.
- Loan terms.
Even then, a person would then have to deal with a direct lender looking to win them over another and vice versa. Even with an understanding of one’s credit score and credit history through MaxCash, we would still love to help make choosing a lender easier!
We at MaxCash consider ourselves a helpful neighbor who is willing to help! Call or check out MaxCash online today to see what more we can do!