If you want to know what a credit score is, and how it impacts your life, you’ve come to the right place. The following blog post will cover everything from what a credit score is in general, why it matters for so many aspects of your life, and various factors that can impact your credit score. By the end of this article, you should have a pretty good idea about how important high credit scores are for most people.
Credit score ranges
The most commonly used scoring models have a credit score range of 300 to 850. Creditors set their own standards for what scores they'll accept, but these are general guidelines:
A score of 720 or higher is generally considered excellent credit.
A score between 690 and 719 is considered good credit.
Scores between 630 and 689 are fair credit.
And scores below 629 are poor credit.
The scoring models used most are Vantage Score 3.0 and FICO 8, and they tend to move in tandem. If you have an excellent Vantage Score, your FICO is likely to be high as well. The two scoring models pull from the same data but weight the information slightly differently.
The average FICO credit score in July 2020 was 711, squarely in the good range. This credit score chart breaks down average FICO 8 scores by age, using data from September 2021.
What factors affect your credit score?
A credit score is a numeric value that represents your creditworthiness and affects the loan rates you are offered in comparison to other borrowers. It is calculated from information in your credit report, which includes your repayment history, how much you owe, how long you've had loans open and whether or not you pay more than the minimum balance on them.
Why do I need my credit score?
Regardless of what type of loan or what type of purchase it may be for - whether it's for a car, home mortgage, or even just opening up an account with a bank - lenders will use your credit report as one factor when deciding if they should offer you a good interest rate (or any rate at all) on their product.
At Credit Repair Ease, we appreciate that is easy to get overwhelmed by all the talk about credit scores. Our team works have simplified things by providing insightful resources to help you out. We have made it easier to access your credit report, review the report, monitor your credit report, and improve our credit score. We have decades of experience in the industry and over the years, we have become the go-to people for a quick understanding of credit scores.
Talk to us on (888) 803-7889 today and learn everything you need to know about credit scores and how to improve yours.
留言