WHAT'S THE DIFFERENCE BETWEEN CREDIT SCORE RANGES?
People are very curious why the credit score ranges from 300 - 850 points and why they are positioned in a certain range that determines the rates they are offered by lenders. This is a good question you should know the answer to before applying for any loans that may lower your score from a new inquiry. You can take a look at all 3 credit bureau reports and score 1 time a year for free at annualcreditreport.com .
If you are interested in getting all 3 credit reports and score monthly to monitor and track your progress we recommend IDENTITYIQ where you can get your credit report and scores for $1 on a 7 day trial.
After pulling all 3 reports and scores you may want to take your score and compare it to the ranges used by most lenders to know where you stand. Having an overall picture of what your credit score means in relation to the credit score ranges means everything when your looking for the lowest interest rate.
Here is a look at the following credit score ranges to give you an idea of what to expect when applying for a loan or service credit account (utility) deposits:
Poor Credit: Credit applicants in the 300-579 score range may be required to leave a large deposit or are denied credit completely.
Fair Credit: The Credit score range for fair credit is between 580-669. This range is considered the subprime borrower range. You may be approved for a loan with a very high interest rate. You could potentially be approved for a government backed home loan depending on your lender.
Good Credit: Applicants in the 670-739 range are considered less risky and may see moderate to good interest rates and terms considering only 8% are likely to become delinquent in the future.
Great Credit: If you are in the 740-850 range then you are at the top tier to receive the best rates and terms available from lenders.
Now that you have a better idea what the difference is between credit score ranges, then you'll be in a better position to know if your in a good range or if there is room for improvement in your credit score. IF your in the poor credit range then the chances of you getting favorable terms from lenders is slim to none and in most cases you will have to leave a deposit. If you are in the fair credit range you may be subject to deposits at times or higher interest rates.
Most people prefer to be at-least above a 670 credit score to be considered for good credit card rates and lower interest mortgages, however having just a high score may not be everything if your credit report has some delinquent items on it. Make sure to check your credit reports atleast once a year and even better to check every few months to maintain and build your score. Remember 1 mistake on your credit report can affect your credit score by more than 100 points!
Contact us today at 1- 855 - 495 - 9212 for a free credit report consultation,