Like it or not credit scores have become an integral part of our lives. Whether you are making a big purchase like a home or automobile, renting an apartment, in need of a personal loan or even searching for car insurance; credit scores are used to make decisions.
FICO, the most widely used credit score, ranges from 300-850, with 850 being the best score. The FICO scoring model offers banks, lenders and credit card companies a snapshot of the risk an applicant may comprise.
The higher a FICO credit score the better interest rates on mortgage, automobile, personal loans and credit cards an applicant will be offered.
Your credit score has the potential to determine your quality of life so knowing where you rank and what your credit score determines about you is important. Once you know what your credit score means you can begin making it better, giving you more options and control over your credit profile.
Rank
Score Range
What a Credit Score Says About You
Stellar
800 – 850+
Practically automatic approval along with the lowest rates on whatever you apply for including mortgage loans, automobile loans, credit cards and even lower insurance rates.
Excellent
750 – 799
Great chance of being approved for credit with great interest rates.
Good
700 – 749
Even though this is a very good credit score and you should be able to qualify for most loans, there will be some lenders that may turn you down or offer you credit at higher interest rates. Each lender may interpret the score differently and look at other factors such as job stability and home ownership.
Find credit cards for good credit hereFair
650 – 699
Most lenders will approve you for automobile, personal loans and credit cards but it may be challenging to get a mortgage loan unless you have a good down-payment and job stability. With a middle of the road score range such as this, it would be a good idea to get your credit scores, analyze them and determine what you can do to make them higher.
Find credit cards for fair credit herePoor
600 – 649
Lenders will deal with you with extreme caution. It may take longer to secure a loan, with lenders scrutinizing all of your finances and references. If you are able to secure financing, interest rates will definitely be higher. If you need a car loan you may have to use a lender such as
USACarCash which helps anyone to obtain financing for any vehicle throughout their Nationwide Network of Automotive Financial Lenders.
Find credit cards for poor credit hereBad
550 – 599
Credit scores in this range are below average and it will be difficult to secure major credit such as a mortgage or automobile loan. The credit cards available to you will be limited but there are a few credit cards available to consumers needing to rebuild or build credit such as the
Orchard Bank® MasterCard®.
Find more credit card options hereDamaged
500 – 549
This score range indicates a major derogatory item on your credit report such as a collection, charge-off, late mortgage, foreclosure or even bankruptcy. Immediate action needs to take place in repairing your credit or you will be stuck with little options when it comes to credit. It may even affect your ability to get employment as many employers pull credit reports in making hiring decisions.
Secured credit cards are a good option for scores in this rangeSerious
300 – 499
Alarm bells ring every time your credit is pulled (no, I’m just kidding) but scores in this range indicate serious financial problems and action needs to be taken now. Credit scores in this range may benefit from a professional law firm repairing their credit such as
Lexington Law Credit Repair, they have experience in removing everything from charge-offs and bankruptcies to late payments and collection accounts from credit reports. They have affordable monthly payment plans.
Now that you know what your credit score means to you it is imperative that you know what factors make up your credit score:
35% – Payment history
30% – Total amount of debt owed
15% – Length of credit history
10% – New or recent credit
10% – Good mix of credit types used
Barring serious delinquencies such as charge-offs and collection accounts, a quick way to improve your credit score is to either pay down your credit card debt to less than 30% or less of your available credit; or, if you do not have the cash to pay down your credit card debt, ask for a limit increase (but do not use it). As 30% of your credit score is amount of debt owed, decreasing the amount owed will increase your credit scores.
If you do not know your credit score, it’s time you find out today. Get your real credit score, used by lenders today!
