![]() ![]() To get the best interest rate, you usually need at least a 740. If your score falls below 600, you will probably have a hard time getting a mortgage (many lenders require you to have at least a 620 or higher). ![]() However, most scores fall between 600 – 750, according to Experian. A score of 700 and above is typically considered good, while 800 and above is excellent. Generally, those with a higher score are more easily granted credit and get a better interest rate. Called a FICO score, it ranges from 300 to 850, with a higher score being indicative of less risk. The most commonly used scoring model is issued by the Fair Isaac Corporation. Theoretically, all three of your reports should be the same, but it is not uncommon for creditors to report to only one or two of the bureaus. There are three major credit bureaus that compile and maintain credit reports: Equifax, Experian, and TransUnion. Your report also shows if you have experienced any credit-related legal actions, such as a judgment, foreclosure, bankruptcy, or repossession, and who has pulled your report (called an inquiry). Types of credit include credit cards, store cards, personal loans, car loans, mortgages, student loans, and lines of credit.įor each account, your report shows who it is with, your payment history, the initial amount borrowed (for loans) or credit limit (for revolving credit), the current amount owed, and when it was opened/taken out. It is based on the information in your credit report, which tracks your credit-related activity. Your credit score is a mathematical assessment of the likelihood you will repay what you borrow. Having a good score can help you achieve your goals quickly and at the lowest possible cost. ![]() Not only do creditors typically check your score when deciding whether or not to approve your loan application and what interest rate to charge you if you are approved, but landlords, insurance companies, and even employers often check it as well. Your credit score can have a major impact on your life. Your Credit Score: Everything you Need to Know ![]()
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