Knowing your credit score range may be the difference between prosperous financial health and potential ruin. Improving your score by just a few points can mean having ten thousand dollars in your pocket at the end of a mortgage that you just wouldn’t have with higher rates. Your credit history is like a permanent record that you are issued in high school except instead of grades you are given a number to represent your fiscal responsibility. Just about any qualified lender these days will carefully scrutinize every detail on your financial record, but the credit score determines how hard the lender will look at your history.
Credit companies often have credit score ranges that are set in stone. They may vary, but being one point beneath the cutoff can translate into money lost or even applications rejected. Credit reports can be ordered online at the convenience of the financially responsible. There are many ways to fix a damaged credit score but it would certainly help to know what each score range really means.
499 and Lower
A rating this low is only accomplished by about two percent of the population each year. The only way to end up in this range is to commit some serious financial mistakes. A professional is advised in any situation that has grown this dire. It’s often difficult to rebound from this sort of credit damage.
500-619
Even at the high end of this spectrum, you will be considered a significant risk. There is a good chance of being denied a loan if your credit score dips below 580. Although it is still possible to obtain loans and mortgages the rates will be too expensive to be worth it in many cases.
620-679
This credit score range is considered to be “fair” risk. You may not be approved for every loan and certain restrictions may be placed on your credit activity. Interest rates at this level are no laughing matter – they will make it even more difficult to keep up payments and improve credit.
680-699
Approvals for loans and credit are often approved at this range. The interest rates may seem a little heavy, but there are definitely more possibilities to shop around. The range of potential lenders will expand significantly, but it may still be wise to improve your score to the 700s range to ensure the best rates. Why not? You’re almost there!
700-799
This is where those who have mastered their finances reside. Loans will almost surely be approved and lenders are less likely to scrutinize your past credit mishaps. Rates will always be fair because lenders won’t see you as being much of a risk.
800+
Those with no credit history will sometimes find themselves in this elite range without being granted any of the benefits. Those with no history have nothing to support a lender’s faith in our ability to repay. Those who have extensive credit histories and have a score above eight hundred will be granted approval for almost any loan with the fairest rates possible. There is really no need to shoot any higher than this! Those in this credit score range have faithfully paid debts, sustained credit, and built a great foundation for financial activity.
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