How to Read Credit Scores

You are here: Home » MoneyTalk » How Do Credit Scores Work? » How to Read Credit Scores
How to Read Credit Scores| LoanMart

After being turned down for a loan by a big bank, customers might find that an online car title loan with a non-traditional lender is a great solution for their situation. At LoanMart, we strive to help people secure the money they need as quickly as possible.

We also care about the customers we serve, and we’re interested in promoting knowledge and responsibility when it comes to finances. That means we want to help borrowers understand money and credit.

It’s important to know why credit scores are relevant – and how to read it. Before shopping around for an online car title loan, it’s important to understand all there is to know about credit scores.

Understanding What Goes into A Credit Score

There are a few different factors that go into determining a credit score. These are:

  • Payment history
  • The age of credit history
  • What types of credit
  •  How much is owed on any of the lines of credit

Let’s look at each of these factors in a little bit more detail to properly read and understand credit scores:

Payment History

Payment history makes up a huge part of a person’s credit score, more so than any other one factor. “Payment history” refers to payments they have made – or haven’t made – in the past.

If all payments have been made on time and in full, this will improve an individual’s score. Late payments could hurt an individual’s score, especially if it’s happened recently.

Credit History

The age of an individual’s credit history also plays a part in determining their score. If an individual hasn’t had credit for very long, they won’t have the same track record of using credit appropriately when compared to someone with a longer credit history. The good news is, the longer an individual has credit, the better their score will get. That’s why it’s important for borrowers not to close their oldest account – it’s helping their score the most!

How Much is Owed

This one is pretty straightforward – if an individual owes money (in other words, if there is debt), an individual’s credit score is negatively affected. Borrowers should do their best to pay off balances and not utilize all the credit they have available if they want to improve their score here.

Types of Credit

This often makes up about 10% of an individual’s score, if the credit agency doesn’t have additional information about a person and their credit. This means that if they know about an individual’s credit and payment history along with how much that is owed, the type of credit they have doesn’t count for as much.

Over 250,000 customers helped since 2002

Trusted by over 250,000 customers since 2002, we know how to do business the right way. Our US based customer service team is there for you seven days a week.

All loans will be serviced by LoanMart. See State Disclosures for additional information. LoanMart is currently not lending in California and does not make loans or credit.

1Loan approval is subject to meeting the lender's credit criteria, which may include providing acceptable property as collateral. Actual loan amount, term, and Annual Percentage Rate of the loan that a consumer qualifies for may vary by consumer. Loan proceeds are intended primarily for personal, family and household purposes. Minimum loan amounts vary by state. Consumers need to demonstrate ability to repay the loan.

2Based on consumers who received a loan from LoanMart from February 2002 to October 2018.

3Application processes could take five (5) minutes to complete. Upon completion, a conditional approval may be given pending review of documentation. Funding time is based on the time from final approval following receipt and review of all required documents and signing, prior to 2PM PST on a business day.

4To exercise the right to rescind, the consumer(s) must notify the lender in writing by midnight on the third calendar day from obtaining the loan. Within one business day from notice of rescission, the consumer(s) must return any monies received and fees paid on behalf of the consumer(s) by certified funds.

5Lenders recommend and encourage consumers to pay early and often and more in order to avoid additional finance charges.

If you are using a screen reader and are having problems using this website, please call 1-855-422-7412 for assistance.