If your bank showed your credit score was a 560 would you know if that was good? I’ve heard some individuals that are happy with a 532 credit score until they find out the scale is designed in a strange manner. It is not as simple as 0 to 1000. You’ll need to understand the credit score ranges to have an idea of what your score means.
A credit score ranges from 300, being the very lowest and 850, the highest credit rating available. The steps between are not set in stone. One point, for example a 619 and a 620 isn’t necessarily the cut off point between having decent or low credit. A lender will probably still consider you for a loan even if the guidelines they use indicate that those are two different tiers.
Beginning with the Highest Scores
A credit rating 750 or higher is great. People with this credit rating likely have few or no bad entries on their credit history. At this range you will encounter no problems receiving a good loan with a very good interest rate. If your credit score falls in this area, congratulations!
You need to understand that you can get a good credit rating as a result of not having a credit history. An 810 will not do you any good if you don’t have a history of credit. You will probably need to apply for and use a credit card or at least become an authorized user on someone elses card.
720 to 750, though not at the top, is still quite good. You will get good rates of interest and all in all you shouldn’t have to worry about it.
The Middle of the Road
620 to 720 is considered decent credit. Loans can be harder to qualify for and the interest rates will not be very good. In this area you may need to take steps to increase your credit scores. But if you are near a 720 score you dont have far to go to be in the very good credit range.
Poor Credit Scores
The credit score ranges below 619 is a poor credit score. The lower you go the worse it gets. If you are around the 600 range you may still be able to get a loan. It most likely will have added restrictions, will likely require a co-signer, and the rate of interest will be high. You need to start working to improve your scores or things will be very difficult in the future.
What You Can Do About Your Scores
Fortunately your credit ratings are always changing. If you find that you are in the low credit score ranges you should start making improvements. Start by sending in the bills on time each month. This will start to add good entries to your credit reports. Over time bad entries will be removed from your reports, but you should be sure you are not adding more.
It could also be help to take a course and learn about how to repair your credit.
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