Having an excellent credit score opens the best doors to financial freedom. FICO scores range from 300 to 850 points, the higher the better.
If your credit score is not close or above 800 points, you should know what constitutes a good credit score that will allow you to qualify for a loan at a decent interest rate. At the bare minimum, it must be at least in the mid to high 700s.
If your score isn’t that high yet, you’ll need to exercise good lending behavior, take some strategic steps, and be patient. You may also want to take advantage of the programs offered by credit repair companies with stablished reputation in the credit industry,
The FICO score is the brand of credit rating used by most consumer lenders, so it is the one that pays the most attention to it. FICO credit scores typically range from a low of 300 to a high of 850. (A few custom FICO scores for car loans or bank cards can range from 250 to 900).
While there are numerous variances, typically the following applies to consumers in regard their credit scores:
• More than 800: Exceptional. Only 1% of borrowers in this range are likely to become seriously behind on their payments. You will easily be approved for the lowest rates, promotions, and discounts.
• 750-799: Very good. 2% of borrowers in this category are likely to become seriously behind. You could still get the best rates from lenders, but it is not guaranteed.
• 700-749: Good. 8% could be seriously behind on their payments. This range is where most Americans are. You are an “acceptable” risk. While most people strive to be in this category, they are missing out on the “Best of the Best” offers that a higher credit score has to offer.
• 650-699: Fair to Good. An estimated 27% in this group could become delinquent. You are a candidate for subprime loans at higher rates. Often consumer in these category are misled to have a “Great” deal just because they were qualified… the interest and fees are often played down by creditors to avoid loosing a sale.
• 600-649: Poor to Fair. Consumers in these category often struggle with the uncertainty of getting qualified for a product or service. When in this category, the stress of no knowing if you could get qualified overcomes and leads to rational decisions and often opting for the Not-So-Good “deals”.
599-and below: Less than Poor. FICO doesn’t trust this group at all; it is estimated that 61% could be seriously behind in their payments. If you can get credit, you will probably have to post a guarantee or a deposit. You may also have to pay a fee that higher-scoring borrowers don’t pay.
If someone’s score falls below 600 on the FICO scale, that’s a critical situation. Many lenders will not lend to you, and those that do lend to you are going to offer the highest possible cost or interest rate. With a FICO score of less than 600, you may be able to get a high-risk credit card or bank loan (called a signature loan), but it could cost you up to 29.99% interest or the maximum allowed by law in that State.
There are many things you can do to ensure that you have a good credit score; Making your credit card and loan payments on time affects 35% of the FICO score – your payment history. Keep in mind that one of the major drops in your score is taken by late payments; one late payment can set you back up to 120 pints depending on your credit file. Another huge aspect is “Balance Owed”, which accounts for 30% of your overall FICO score. This is the amount owed in relation to your credit limits, the less the better. Generally keeping your revolving balances under 10% will greatly impact your points positively . 15% of your overall FICO score is Length of History on your accounts. The longer your credit has been establish, the better. New Credit accounts for 10%, basically the impact your inquiries bring to your credit report. The remaining 10% of the FICO scoring is based on Types of Credit. The better the Mix your are managing, the better.
And by far, the best option to an Exceptional credit score is to contact a Credit Professional at Credit Services of America, where we specialize in Credit Repair, Student Loan Consolidation, Tradelines, and Debt Settlement. We are your one stop shop for ALL your credit and debt needs. Our experienced professional Credit Consultants have helped thousands of customer enjoy the fruits of having great credit, saving them Thousands and in some cases Hundred of Thousands in interest, fees and deposits. Call us for a FREE consolation at 844-349-8727 and get started today!
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*Individual results may vary. Please call for more details and to discuss your own individual situation.