Industry scores are designed to predict the likelihood that a consumer will be left behind in a particular type of account, and the scores range from 250 to 900. Having a perfect or nearly perfect score is great, but it doesn't mean much other than having a badge of honor that only 1% of the population can achieve. Once your score reaches 780 or higher and stays there, lenders consider it a low credit risk. This means you'll get the best interest rates, good product deals, and you're almost guaranteed to get a “yes” for any loan you apply for that fits your income level. If you're curious, these are the best places to get your credit score or report for free.
Additionally, you can monitor your credit for free through Experian and get your free credit score and credit report, as well as alerts about any unauthorized credit activity that may be a sign of identity theft. Your personal credit report includes all the necessary contact information, including a website address, a toll-free phone number, and a mailing address. People with scores in this range are likely to qualify for a wide range of loans and credit cards, but they may be charged slightly higher interest rates than the best available. But if you know where you stand in the credit rating range, you can make educated guesses about your financial profile. It's very important to get and maintain a good credit score. Every lender has their own criteria for credit ratings, as well as their own thresholds for getting a good rating.
Most consumers fall somewhere in between that spectrum, and credit ratings help lenders understand the level of credit risk of individual borrowers. When it comes to mortgages, your credit score is more important than in any other type of personal financing. People with scores in this range usually experience simple approval processes when they apply for new credit, and are likely to be offered the best loan terms available, including interest rates and the lowest fees. Generally speaking, credit scores that fluctuate a few points up or down won't have much of an effect on your ability to get a loan or credit card approved. Credit ratings don't take into account income, savings, length of employment, or alimony or child support payments. However, lenders can consider these additional factors when making lending decisions.
In addition to qualifying for a credit card, your score can also have a significant impact on the APR and other conditions of your account. To challenge the information on your personal credit report, simply follow the instructions provided with it. An extremely low credit score, suggesting a history of poor debt management, can cause creditors to decide not to lend you money, rent you an apartment, or give you telephone or cable equipment. While the FICO and VantageScore graphs show an idea of how lenders can interpret different credit rating ranges, lenders and other companies may have different views on creditworthiness. Landlords and utility companies can also use credit ratings to decide if they will charge you a security deposit and how much it should be.