Good Credit Report Score
You and Your Credit Report Score
You are interested in obtaining credit with excellent terms and interest rates but before you make contact with a potential creditor, you need to know what a good credit score is. You need to know this because you are aware that your credit score will determine in large part the terms and conditions of the credit you receive and whether or not you will receive credit in the first place.
Good Credit Versus Bad Credit
Credit scores, commonly referred to as FICO scores, range from 375 to 900 points. Creditors use the scores as a snapshot of an applicant’s creditworthiness. Generally, people with credit scores below 620 will have a difficult time getting credit and if they are able to secure credit, they will receive the least favorable terms and conditions. At the other end, people with credit scores at 700 or higher can expect to receive competitive terms and conditions and are in a position to negotiate terms and conditions which those with scores below 620 can only dream about.
Bad Credit Means Scrutiny Or Rejection
In an article in the March 26, 2007 edition of Newsweek Magazine titled “Buying With Bad Credit,” Jennifer Orodonez noted that “Americans whose credit report score is between 500 and 599 (read: not so good) and who not long ago might have qualified” for some types of loans are in the present economic downturn almost certain not to be able to secure credit. The economy has worsened since that article and credit requirements have stiffened.
Better Credit Ratings Mean Better Terms
Some sources state that credit scores between 620 and 650 are average credit scores and that lenders will most likely scrutinize those individuals but still extend credit to them, though not on the best terms and conditions. Scores above 700, are generally considered to be in the “very good credit” range and entitle the possessors to the most favorable credit terms and conditions. And of course, what’s a good credit score may depend on the type of credit you are interested in obtaining since some types of credit require higher scores than others.
Click here for more information on a good credit report score.