What Is a Good Credit Score Range
Your credit report shows you your credit history but it does not show you if you are credit worthy or not. This is why you need the finishing touch: the credit score. You need to know your credit score since you want to find out if all the information from the report means that you can qualify for loans or if you just have to continue what you already started in terms of your payment responsibilities and other financial endeavors. If you want to be successful in your personal tasks, then you have to get a high credit score range. But what is a good credit score range? Let us take a look at the facts.
FICO is the standard algorithm used to determine credit score range. The system calculates your score on a 300 to 850 range with the higher number pertaining to excellent score. The lower the number, the bigger the chances on being on the disadvantaged section. According to some experts, a good credit score range is at 680 to 700 whereas the standard number for high credit score is 720 and up. If you are within the 720 mark, for the most part, you get the exact perks as someone who has a range of 850, more or less. However, having a good credit score does not mean lower scores do not deserve anything good.
Those whose scores are lower than the credit score can still benefit from loans though they may have to put larger down payments and even suffer higher interest rates. Even if you have 300 on your score, that does not mean you are hopeless. The high credit score range is like your safety net. You want to be in this range because it helps you become more effective in managing your finances. If you have a low score, you still have time to fix it and reach the good credit score range. As you aspire to reach higher scores, you experience tremendous benefits.
With good credit score, you are less likely to be denied by lenders from getting loans. You will also have a greater chance of receiving lower interest rates for loans. You can also opt to get a loan and not even pay a down payment, if you want. You can minimize financial risks and you have the power to negotiate regarding loans. You have more control and more power with higher scores. However, to reach to that level, you have to really work hard to lower your loans, pay on time, prevent outstanding balances and stay loyal to your old credit. You also need to know that as you increase your debts, you lower your scores especially if you have a history of late payments.
Understanding good credit score range is like being informed about your opportunities if you take good care of your financial responsibilities. Managing your finances can be tough and that is something we have to accept but we can do something about it. If your goal is to get the best possible score, you should first know your credit condition. If you wish to know more about it, all you have to do is sign up and you will receive scores from the top credit bureaus.