What is a credit rating?

A credit rating is a numerical expression used by lenders to evaluate an individual’s likelihood of fulfilling their repayment obligations on credit accounts. Credit ratings are based on a person’s credit history, including the amount of credit they have used, their payment record, the types of credit they have used, and other factors. Generally, the higher the number, the more “creditworthy” a person is. In Washington, credit ratings can range from 300 (poor/low risk) to 850 (excellent/high risk). Your credit rating is used by lenders to determine whether you are eligible for certain types of credit and what kind of interests rates and fees you will pay. The lower your credit rating, the more limited your borrowing options may be, and the more expensive the loans you do receive will be. This information is important to understand when it comes to credit repair law in Washington. For those with lower credit ratings, lenders may require a higher down payment or interest rate to approve a loan. Other lenders may not approve the loan at all. Credit repair laws in Washington offer protection for individuals with inaccurate information on their credit reports, disputes about inaccurate information, and help understanding the different factors that can impact a credit score in Washington.

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What is a credit rating?

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