You always hear people talking about credit scores but what exactly is a good credit score? Your credit score is determined by your credit history. The better you history, the higher your score will typically be. Having a higher credit score can mean big savings on interest rates when acquiring new loans.
What Is The Range Of Credit Scores?
Credit scores range from 300 to 850 with 300. The higher the number, the better you are although attaining a perfect 850 is near impossible so don’t worry too much. Depending on which credit bureau you check with, these numbers will vary.
On average, most people are within the 680 to 700 range. If your score falls within this range, you are in pretty decent credit standing. Being in this range, you should be able to get an affordable interest rate on a mortgage, car loan, or any other type of loan.
If your score in around 720 to 760, you have very good credit. With a score like this, you should have no problem getting a loan. On top of that, your interest rates will usually be better than most.
Anything higher than 760 represents excellent credit. A score in this range will have lenders smiling and offering credit with open arms. Having a credit score this high also puts you in the best position to negotiate the best rates. By managing your credit wisely and staying on top of errors in your credit report, anyone can attain these levels.
What If My Score Is Lower?
It is not the end of the world if your credit score is lower. You can still receive loans and other types of credit, it will just be a little more difficult. You will most likely have to deal with higher interest rates and your credit limits may be smaller. With time and work, your credit score can be raised and fixed.
There are many ways you can go about fixing and raising your credit score. The first thing that you must do is obtain a credit report. Once you get your report, you can start to go through it and create a plan. Follow a responsible plan closely and you will have your score increasing in no time.