When a Credit Score is Good Enough
You must have wondered what stands as a good credit score with all the noise about credit scores. You already have an inkling of what this three digit number can do to your everyday life. When you check your credit score, the human in you will want to know where you stand.The credit bureaus have a different measurement but 300 to 850 is the standard relied upon by many individuals. However, different lender set what it considers as a “good” credit score. What lender A consider as good credit is different from that of lender B. Nonetheless, credit scores are graded below;
300-579: Bad Credit
580-669: Fair Credit
670-739: Good Credit
740-799: Excellent Credit
800-850: Exceptional Credit
This three digit score range is a determinant of whether the lender will grant you credit or issue you a credit card. More importantly, it will dictate the interest rate the credit will be provided.There is no guarantee that you will be granted specific credit due to a good score, but knowing where you stand will help to consider the right offer to apply for. All in all, higher credit score portrays good credit choices with lenders having enough confidence in your ability to repay your credit as at when due.Look at the impact of each credit range on you;
300 to 629: Poor Credit
This is considered the lowest credit score anyone can have and there are averagely 17% of Americans in this credit pitch. If you are within this range, you had better use a secured credit card as lenders will require you to deposit before being granted credit. The worst is that you may never be granted credit with this score. Expect a higher than the normal interest rate on your credit also, as you are considered high risk.
580-669: Fair Credit
Considered a fair credit score by most lenders and has around 20.2% Americans within this range. Individuals within the bracket are viewed as subprime borrowers. This denotes a below than average credit rating. In this range, you will be at the mercy of lenders who will punish you with higher interest rate. You will only qualify for higher interest rate mortgage. If you look back you have an extended and reoccurring history of late or missed payment on your credit.
670-739: Good Credit
Look at your credit report, if the score falls into this range then you are in the good books of the lenders. You will have a good interest rate on your credit and all other perks on your mortgages. Of the 21.5% of Americans in this credit range, 8% is expected to become high-risk borrowers in the future. To ensure you are not part of this 8%, ensure you never miss a payment and it’s not late.
740-799: Excellent Credit
You are in a very good position when it comes to credit score, belonging to the 18.2% of Americans with this excellent credit rating. The main benefits of this class of credit score are the lower interest rates and ability to secure any credit facility. Most lenders are ready to pitch their tent with you.
800-850: Exceptional Credit
The upper echelon of the credit score. You are part of the 19.9% that enjoys the best rates from lenders. Rarely will you be denied credit if you have this credit score range.