What’s the Difference Between Good Credit, Bad Credit, and No Credit?

October 23rd, 2017 by

Credit Report

Taking out an auto loan can sometimes be stressful, but the finance center at Simply Better Auto Center is here to make it easier, beginning with this simple explanation of the difference between good credit, bad credit, and no credit. Find out here, and then count on us to help you get an auto loan–no matter what your financial situation looks like.

What’s My Credit Based On?

Your credit score has been developed based on your credit report, a portfolio of your financial transactions, including things like credit card payments, car payments, and mortgage and rent payments, as well your debt-to-income ratio.

What the Difference Between Good, Bad, and No Credit?

Most lenders will look at your credit score to determine whether to give you a loan based on whether you have:

  • Good Credit: If you consistently use your credit, make your payments on time, and have a solid balance of different kinds of credit, you likely have a good credit score.
  • Bad Credit: On other hand, failure to make payments in a timely manner and racking up large amounts of debt that you can’t pay off on time can lead to a bad credit score.
  • No Credit: If you have no debt you might think you have a good credit score, but in fact you might have no established credit at all. If you haven’t ever taken out a loan or credit card, you might not have anything from which to draw a reputation for your credit. In this situation, you have no credit at all, which can make it difficult to get some kinds of loans.

How Do I Improve My Credit Score?

There are various ways to improve your credit score, including:

  • Setting up a monthly budget
  • Taking out a loan and making monthly payments on time
  • Paying down your debts

Simply Better Auto Center: Easy Loans, No Matter Your Financial Situation

At Simply Better Auto Center, we know life can throw you a curveball from time to time. That’s why we’re happy to offer our customers a quick and easy auto financing process, whether they have good credit, bad credit, or no credit at all. You can even apply for financing with us if you have a recent bankruptcy on your record. Stop by and see us today or contact us at (518) 720-0062 with questions about the difference between good credit, band credit, and no credit.

Posted in Credit