Good Credit Score Range

Written by on February 15, 2011 in Money - 4 Comments | Print this page

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Credit StatusA good credit score range is what everyone wants to see in their credit report. Good credit means banks and other lenders see you as financially stable and a potential client.

The most accepted credit score system is FICO which stands for Fair Isaac Corporation. You can get your FICO credit score for free or online with are sites that offer free 30 day trials. Should you use a service to monitor your credit be careful not to fall prey to scammers.

Credit scores range from 300 to 850, the higher you score the better. If your score ranges from 760-849 it means your credit score is excellent. Banks and lenders will definitely not give you any trouble and will provide you the best rate and terms. If your score is around 700-759 it means your credit score is in great standing and you can apply for loans and credit cards and you will be get a good interest rate.

If your score is around 620-699, this means you can qualify for a loan application but the interest rate will not be that good. If your score is 619 and below this means you have a poor credit score and you will definitely have a hard time applying for a mortgage or credit cards. There might be banks that would lend you funds but it’s only a limited amount and very high interest rate.

A good credit score is essential if you need to apply for big loans. Banks will always check your credit score whenever you apply for a credit card, mortgage and car loan. There are ways to make sure your credit score stays in good shape. First, you need to make sure that you pay all your bills and obligations on time. Your credit history also affects your score. That’s why younger people have low credit score because they don’t have enough credit history to back them up.

Most people will also advice you to keep you first credit card since it will be proof of your long credit history. People who have variety of loans will also generally have a better credit rating. However you should also avoid applying for loans too often because it could send a warning to banks and it might affect your credit score. If you have a big loan of course that would also affect your credit score in a negative way.

Before applying for a loan, check your credit score. There might be mistakes that need to be corrected. It’s always recommended that you fix your score first before applying for any loan so you won’t be rejected. Of course it’s not always a guarantee that you will be getting the best term if you have a good credit score. Some banks are stricter than others and will apply a higher interest rate. Some are probably using a different system. Whatever the reason if you have a good credit score range, it means you have many options so choose from as well as which bank or lending organization you want to give your business.

There’s more where this came from.  The Credit Doctor has useful and easy to use information that will help you fix your credit.  Find out for yourself what is a good credit score.

Image: phanlop88 / FreeDigitalPhotos.net

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About the Author

Alana Johnson

Alana Johnson tries to enjoy the simple things in life and writes for the Lifestyle category on Quality Life Resources. Living in the small New England town of Norwalk, CT, she looks forward to the warm summer months. To submit your own article for my category, please click HERE. View all Self Improvement articles.