Josh Ramos asked:
Although there are no universal guidelines as to what represents a very good credit score, a quick search of the Internet revealed that quite a few creditors consider a 700 credit score as “very good” to “excellent.” Scores range from 300 to 900. According to the creator of FICO scores, some 18% of Americans have ratings in the 700-749 range.
These numbers are important as they are a snapshot of your creditworthiness at a given moment in time. Credit scores are based on information in your credit reports and thus allow creditors to make instant credit decisions about you. Whether you get credit and at what interest rate will be governed initially by your credit score so the higher your score, the better the deal you will be offered.
So you have a 700 credit score. Should you consider raising it? According to Fair Isaac Corporation, which provides this computation to the three main credit bureaus and most creditors, some 40% of consumers in the United States have higher numbers than you. That is a troubling statistic. Research by this author indicates that most creditors consider excellent credit as being above 725, some even above 750, and these are the people who get the best terms and conditions of credit offerings.
Thus, even though your score might be considered “excellent” by some creditors, if you can delay your credit purchase a few months, then it will pay you to wait while you raise your score. You should consider some of the benefits of raising your credit score, which include paying a lower interest rate on your loan. As you probably know, a lower interest rate on a home mortgage can result in thousands of dollars in savings over the life of your loan and a reduction in interest rate will also lower your monthly payments. Whatever you consider to be a good credit score may not be enough to get you the best credit terms. It pays to raise your grade if it is below 725 to 750.
Amber
Although there are no universal guidelines as to what represents a very good credit score, a quick search of the Internet revealed that quite a few creditors consider a 700 credit score as “very good” to “excellent.” Scores range from 300 to 900. According to the creator of FICO scores, some 18% of Americans have ratings in the 700-749 range.
These numbers are important as they are a snapshot of your creditworthiness at a given moment in time. Credit scores are based on information in your credit reports and thus allow creditors to make instant credit decisions about you. Whether you get credit and at what interest rate will be governed initially by your credit score so the higher your score, the better the deal you will be offered.
So you have a 700 credit score. Should you consider raising it? According to Fair Isaac Corporation, which provides this computation to the three main credit bureaus and most creditors, some 40% of consumers in the United States have higher numbers than you. That is a troubling statistic. Research by this author indicates that most creditors consider excellent credit as being above 725, some even above 750, and these are the people who get the best terms and conditions of credit offerings.
Thus, even though your score might be considered “excellent” by some creditors, if you can delay your credit purchase a few months, then it will pay you to wait while you raise your score. You should consider some of the benefits of raising your credit score, which include paying a lower interest rate on your loan. As you probably know, a lower interest rate on a home mortgage can result in thousands of dollars in savings over the life of your loan and a reduction in interest rate will also lower your monthly payments. Whatever you consider to be a good credit score may not be enough to get you the best credit terms. It pays to raise your grade if it is below 725 to 750.
Amber
