Credit Score Range: Different Credit Score Ranges Explained

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Topic: Credit Score Range: Different Credit Score Ranges Explained

What is Credit Score?

The credit score is a number that represents the risk of lending money to a particular person. A high credit score will allow the person to borrow more money and at a cheaper interest rate.
A low credit score will limit your borrowing ability and potentially raise your interest rates.

A Good Credit Score:

Cibil scores range from 300 to 850. A score of 700 or more is considered very good, while scores below 600 are typically considered bad.

Credit Score Range

Your credit score is one of the best measures of how you handle money, partially due to the fact that it’s fairly predictable based on your repayment history. These are personal finance basics that every American should know!

A few things can affect your credit score

1. Payment history: The earlier you pay your bills timely, the higher your score.

2. Length of credit history: Your score shrinks as the number of accounts or balances increases, since it means that you are more likely to miss payments.

3. New credit accounts: Opening new credit accounts reduces your score.

4. Credit inquiries: Inquiries can lower your score but if you stayed on top of credit card statements and paid for all charges, the inquiry might not be related to your payment history.

5. Type of credit: Credit cards are the most useful when you pay them on time, but there are other types of credit that will help you build up your score. For example, having several active accounts can improve Credit Score Range if you have a history with them.

The highest score a consumer can attain is 850, and the lowest is 300. The average score as of May 2013 is 678. Here are few Benefits of it.

How can you maintain a good Credit Score Range?

·        Keep Credit utilization ratio below 30%.
·        Use Credit Card Wisely.
·        Keep All Your Loans Up to Date and Pay on Time.
·        Use Your Available Credit Wisely.
.        Make Full Payment on Time.
.     Put Money in a Savings Account Instead of Paying Credit Card Balance.
·        Don’t Apply for Fitness Credit Cards.
·        Pay All Your Bills Right Away to Avoid Late Fees.

Different Credit Score Ranges: Good & bad impacts

300 to 349 Credit Score

You have virtually no chance of getting a credit card or loan, because you have not proven that you can use credit wisely. You probably have a history of late payments, or the creditor believes you might not pay the balance back.
Your options are limited and you will probably have to make all your purchases with cash.

350 to 399 Credit Score

This is a very low score, but it’s not impossible to get a loan if you have a co-signer (a person who signs a contract with you, agreeing to pay the loan if you don’t). You may also be able to get credit by paying a fee—sometimes as high as $75 or $100—to a company that will add you to their list of customers. These companies offer very bad deals that have interest rates above 30%.
You may also be able to get a credit card, but you will have fewer options and fees than with a co-signer.

400 to 499 Credit Score

Your credit score might be high enough for you to get a secured credit card, but in many cases that will mean very high fees.
Your options are also limited. You may be able to get a loan with co-signer

500 to 549 Credit Score

You probably have a moderate credit score that could allow you to get a credit card or an unsecured loan. However, interest rates for these cards and loans will be higher than average.

600 to 649 Credit Score

You may have a marginal credit score that will require you to pay a high interest rate on your car loan, mortgage, or other loan. However, you may be able to get a credit card with the right financial institution.

600 to 649 Credit Score

You have a FICO score that is considered average (the middle of run against credit scores). This means you can get a low interest rate on a car loan, mortgage, or other loan. However, you may have to pay for your secured credit card.

650 to 699 Credit Score

You have a moderate credit score that will allow you to get a secured credit card or a mortgage. However, interest rates for these cards and loans will be higher than average.

700 to 749 Credit Score

You have a very good credit score that is a sign you are financially responsible. This gives you access to the best loan and credit card offers, as well as the lowest interest rates.

750 to 850 Credit Score

This is considered a perfect or excellent credit score that is the highest number possible. You have access to the best loan and credit card offers, as well as the lowest interest rates.

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