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As you know a good credit score means lower interest rates, better chances
of passing a credit checks, cheaper mortgages and more... (See your free score here) But what is
a good credit score?
A credit (or FICO) Score of 700 and above
People with scores 700+ considered excellent and lenders will categorized
this group as an A credit rating.
Credit Scores within this range will have access to the best interest
rates and terms. People in this range are almost guaranteed of approval
for loans that are within reason. Approximately 60% of Americans are
within this range.
A credit (or FICO) Score of 600 - 699
People with scores 600 - 699 are considered good credit and most lenders
will categorized this group as B rating.
People with credit scores within this range will have access to good
interest rates, but may not qualify for the very best interest rates
and terms.
Approximately 27% of the Americans are within this credit range.
A credit (or FICO) Score of 500 - 599
People with scores 500 - 599 are considered risky credit and most lenders
will categorize this group as C rating.
People with scores within this range may still get loans and pass credit
checks; however they may have to pay at least 2% more than the group
in the excellent category and may be required to make larger deposits
for utilities and rentals. Generally people in this category have late
payments, outstanding accounts and are close to maxing out there current
available lines of credit. Approximately 12% of Americans are within
this credit range.
A credit (or FICO) Score of 499 and less
People with scores 499 and below are considered very risky credit and
most lenders will categorized this group as D rating. People with credit
scores in this range may have liens, foreclosure, repossessions and
credit judgments against them. People with Credit Scores credit scores
of 499 or less may still be eligible for a loan, but may have to pay
the highest rates that regulation allows. They will generally receive
the worse terms and it is likely that applications for credit and rentals
will be rejected. However, don't worry, even the worst credit can be
repaired and you can receive a good credit rating with a little work.
Approximately 1% of Americans are within this credit range.
Remember, a credit
score is simply a snap shot of your current credit history and the amount
of debt you currently possess. It is not a number you carry with you
at all times, this means it is in a state of flux and you can receive
a good credit score simply by doing the right things now and in the
future. Also, make sure you get a free credit report so you know where
you stand and what needs to be fixed. Get your free
annual credit report to see your score!
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