The True Meaning Of Your Credit Score
We live in a world where our credit score determines a lot about the quality of our lives. Cell phone companies, employers, auto dealerships, landlords, and banks all look to your FICO credit score to decide whether they want to do business with you or not, so our scores are extremely important. Do you know exactly what your FICO score means? Here is a breakdown of credit score ranges and what it says about you to lenders.
800+ = Stellar
A FICO score above 800 puts you in ideal shape to get immediate approval. Scores above 800 indicate no late payments, no liens, no bankruptcies or judgment, or collection accounts. People with scores this good can expect lenders to compete for their business.
750 – 799 = Excellent
A credit score between 750 and 799 indicates that you will probably get the same great interest rates as someone with an 800+ score. Debt to income ratio is usually what creates this slightly lower score, but you still look fantastic to lenders.
700 – 749 = Good
Scores in this range can mean there are a few late payments and maybe even a collection on your records. However, good credit is attractive to most lending institutions. Some lenders may give you higher interest rates with this score.
650 – 699 = Fair
With fair credit, you are probably going to have a hard time securing a mortgage, although you may still be approved for a personal or auto loan. Now is the time to start working towards turning your credit around.
600-649 = Poor
Scores in this range are going to make it very difficult to find a lender. There are multiple late payments, collections, and possibly bankruptcies.
550 – 599 = Bad
People in this credit range will be severely limited on the credit they will be able to obtain. Most banks, lenders and some credit card companies will be hesitant to grant you credit. At this point, your main focus should be on rebuilding your credit.
500 – 549 = Damaged
These scores mean you need to focus on turning your credit around immediately. Check here for an easy way to start repairing your damaged credit today.
300 – 499 = Severely Damaged
Credit that is in this range could benefit from professional help, such as a lawyer who is skilled in credit repair.
You can find out what your FICO score is at their official website. This is the score that most lenders use, so it’s a good idea to know what yours is. If you need tips on improving your credit, get in touch with us today.