![]() What a "good" credit score means for you:īorrowers with "good" credit scores will likely have a good range of credit card and loan types available to them. ![]() Lenders often call people in this category "prime" borrowers. The average VantageScore and FICO credit score for borrowers in the US falls in this range. Good credit score (VantageScore: 700 - 749 FICO: 670–739) Keeping them from an exceptional score may be a higher than 30% debt-to-credit limit ratio, or simply a short history with credit. How to earn a "very good" credit score:Īs with borrowers in the excellent/exceptional credit score range, borrowers labeled as "very good" by their FICO Score will have a solid history of on-time payments across a variety of credit accounts. They also likely have a diverse mix of credit demonstrating that many different lenders are comfortable extending credit to them. ![]() Additionally, they will most likely have a credit utilization rate of less than 30%: meaning that their current ratio of credit balances (what they owe) to credit limits (the amount of credit that are approved to use) is roughly 1:3 or better. How to earn an "excellent" credit score:īorrowers with credit scores in the excellent credit range likely haven't missed a payment in the past seven years. Similar to "exceptional/excellent" a "very good" credit score could earn you similar interest rates and easy approvals on most kinds of credit cards. People with excellent/exceptional credit scores are typically offered lower interest rates. ![]() What an "excellent/exceptional" credit score means for you:īorrowers with exceptional credit are likely to gain approval for almost any credit card. When lenders evaluate a specific loan or credit application, they are more likely to dig into the distinct details of a borrower's full credit report and credit history before they approve or deny the application. Ultimately, lenders use a credit score range as a broad view of a borrower's credit history. Lenders can then assign appropriate interest rates, fees, and payment terms on your line of credit. Lenders use these credit score ranges as a way to quickly, consistently and objectively evaluate your potential credit risk. They are then split into ranges, based on how low your credit score is to how high it is. What are the credit score ranges?īoth VantageScore and FICO scores span from a low of 300 to a high of 850. It's important to check your credit reports and stay updated on the factors that the agency took into consideration. Keep in mind that the algorithms for calculating scores change from time to time. The VantageScore or FICO algorithms are then applied to those reports to determine your credit score. These three credit bureaus, Experian™, Equifax ® and TransUnion ®, collect financial information about you, like your payment history, and put them in a credit report.
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