My score is 676 and was told that is poor. What is a good credit score?
Answers: Oh the good old credit score question, “What is a good credit score?” The answer varies. It all depends on what you are trying to do at the moment. My assumption is that you are looking at getting a loan or credit card and either got a higher interest rate or have been denied the loan.
First, let’s start with understanding that there are credit score ranges. Let’s look at FICO scores, which are commonly used by many lenders. The FICO score ranges from 300 – 850. Three hundred being the poorest and 850 as excellent. It can seem daunting trying to understand the credit score system especially when you are dealing with 3 credit bureaus who calculate credit risks using the same information differently. Remember, creditors and those who use credit scores to assist in decision making can choose any of the three credit scores.
Read More >>> 8 Ways to Repair Your Credit Scores Quickly
Secondly, understand that the credit scores you purchased or received free online may not be the exact scores that a lender sees. But, they do give you an idea of where your score may be. Read more on how to get free credit scores.
Let’s get back to your question on the ranges of credit scores. Take a look at this chart we’ve created to get a better idea of where you fall into the credit score ranges.
Lastly, the lower your score the higher your risk. This may mean higher interest rates equaling to higher cost for you to obtain a loan compared with someone with a higher score. A low score may just prevent you from getting a loan.
Final Word: It’s always better to know where you fall in the credit score range. This gives you an idea of the best time to apply for a loan or take action to repair your credit before your apply.
If you do not know your credit score follow these steps:
1) Pull your credit report at AnnualCreditReport.com (Read more)
2) Get access to your free credit score (don’t pay for it if you can get it for free).
3) Dispute credit report inaccuracies that you find.
Read More >>> 5 Ways to Boost Your Credit Score
It’s good to know where you stand when you apply for any loan. This may give you some wiggle room to negotiate better terms. Knowing your credit score will give you the power to choose the right lender since lenders have differing interest rate tiers. For instance, one lender may consider a 720 FICO score as excellent but another may want a 760 credit score to give you the best rate.
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