For most of us, purchasing a house and a car are two major situations where borrowing money is essential. They are significant financial outlays that require dedicated effort to pay off over a long period of time. Banks and other lending institutions rely on our credit score for approval of loans, so what credit score is needed to buy a house or car?
Credit scores are the safeguard banks use to protect themselves against the possibility of loan defaults. They are based on a range of data related to the borrowers previous financial accountability and present financial status. Whether we like it or not, our credit score is a personalised risk assessment, and involves disclosure of both good and bad financial dealings. The positive and negative are taken into consideration for our individual credit score.