Your credit score tells lenders, creditors, landlords and employers how responsible you are, how much risk you take with maxing out your credit lines, and how likely you are to paying back your debts. But what is a good credit score?
First, we need to define exactly what credit score you are talking about. While most lenders and creditors use the FICO score as a way of measuring your credit worthiness, it is not the only credit score. But it is pretty much the standard metric used to measure lending risks.
The very best FICO credit score you can get is an 850, which is nearly impossible to get, but having a perfect credit score actually doesn’t give you too many advantage. Anything over a 770 is considered excellent credit, and will get you the very best rates at the very best terms. With a 770 or higher FICO score, you should not have any trouble receiving the loan you want.
The average credit score in America, however, is around 720. If you are in this neighborhood, you are still in good standing and shouldn’t expect to have any problems receiving a favorable loan. If you fall below 720, however, there are some simple things you can do to improve your credit score rather quickly, which you may want to consider.
If you have a 620 credit score, or lower, you are considered high risk. If you fall in this category, there are several strategies you can pursue to fix your credit score. Take those necessary steps to increase your credit score now, or it will come back to haunt you when you need to rely on a better credit score down the road.
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