Michael Gentleman asked:
These days, economic times are tight. People all over the country are grappling with devastating foreclosures, and credit is often highly damaged for most people who never thought they would have a below average score in their lifetimes.
It can be increasingly difficult to get a loan now, because financial institutions and lenders are facing the same difficulties that average consumers are. They are very wary of lending money to anyone in the fear that they will lose money on the deal. This makes it very difficult for those who are in the market to buy a home or car but will need a loan to pay for it. So what is considered a good credit score on the credit score chart?
Now that economic times are hard, people are wondering what separates a good score from an average one. And more importantly, they want to know what score they should have to easily qualify for loans when the need arises.
Well, the answer is that on the three-digit scale that indicates an individual’s credit worthiness, 750 is considered outstanding. People with this type of score should have no problem qualifying for loans and mortgages. They will also get some of the best rates available. A good score (or above average credit score) is between 680 and 720. Lenders will typically be willing to lend you money, but you may not qualify for the best rates. In general, though, you shouldn’t have a problem being extended new lines of credit.
Average scores fall between 650 and 680. A bad score is anything below 620, which usually earns people a “high risk” label and makes it very difficult to obtain credit, especially without an outrageous interest rate that comes with it. Having a good score is important because it affects the overall amount that you’re going to pay for most major expenditures in your life.
A good credit score means you’ll be offered mortgage and auto loans with lower interest rates, meaning that you’ll pay less overall during the life of the loan. Car insurance, life insurance, and home insurance may also be impacted by your good credit. A credit score gives lenders an idea of what your financial life looks like, so it is usually a pretty accurate picture.
Aim for a good credit score above 700, and you will probably be pretty happy with your ability to get credit at a reasonable interest rate.
Harold
These days, economic times are tight. People all over the country are grappling with devastating foreclosures, and credit is often highly damaged for most people who never thought they would have a below average score in their lifetimes.
It can be increasingly difficult to get a loan now, because financial institutions and lenders are facing the same difficulties that average consumers are. They are very wary of lending money to anyone in the fear that they will lose money on the deal. This makes it very difficult for those who are in the market to buy a home or car but will need a loan to pay for it. So what is considered a good credit score on the credit score chart?
Now that economic times are hard, people are wondering what separates a good score from an average one. And more importantly, they want to know what score they should have to easily qualify for loans when the need arises.
Well, the answer is that on the three-digit scale that indicates an individual’s credit worthiness, 750 is considered outstanding. People with this type of score should have no problem qualifying for loans and mortgages. They will also get some of the best rates available. A good score (or above average credit score) is between 680 and 720. Lenders will typically be willing to lend you money, but you may not qualify for the best rates. In general, though, you shouldn’t have a problem being extended new lines of credit.
Average scores fall between 650 and 680. A bad score is anything below 620, which usually earns people a “high risk” label and makes it very difficult to obtain credit, especially without an outrageous interest rate that comes with it. Having a good score is important because it affects the overall amount that you’re going to pay for most major expenditures in your life.
A good credit score means you’ll be offered mortgage and auto loans with lower interest rates, meaning that you’ll pay less overall during the life of the loan. Car insurance, life insurance, and home insurance may also be impacted by your good credit. A credit score gives lenders an idea of what your financial life looks like, so it is usually a pretty accurate picture.
Aim for a good credit score above 700, and you will probably be pretty happy with your ability to get credit at a reasonable interest rate.
Harold
