If you wish to apply for a loan, it would be a very good idea to study credit scores and credit score ranges. Checking on these may very well spell success or failure of your application. Understanding what your score is from a credit score range would help you anticipate the likely results of your application. Furthermore, it would also give you a good idea on the kind of terms you could get for the loan.
A credit score is a number representing your creditworthiness, or how likely you are to pay a debt. It is taken from information gathered by credit reporting agencies, such as Equifax. Basically, the higher your credit score is, the more likely your application would get approved with desirable terms.
There are several credit score models available to credit institutions but what the latter mostly use is the Fair Isaac Corporation (FICO) model. The FICO credit score scale ranges from 300 to 850. If you get a score lower than 600 on this scale, you would have very little chances of obtaining a loan. If you score anywhere from 641 to 680, your chances of approval would improve, but interest charges would most likely be on the high end. If your score is somewhere in the 641 to 680 range then you would very probably do well. Your loan application would have a high chance of getting approved with good terms, although the outcome could be even better with a higher score. If you score anywhere between 681 and 720, you would have a very good opportunity of getting your desired borrowing terms.
The best score possible is in the range of 720 to 850. With this score, you could more easily obtain any kind of loan with ideal financial terms.
If you find that you're on the low end of the credit score range, don't despair, as there are ways to bring up your scores to a more favorable one.
A credit score is a number representing your creditworthiness, or how likely you are to pay a debt. It is taken from information gathered by credit reporting agencies, such as Equifax. Basically, the higher your credit score is, the more likely your application would get approved with desirable terms.
There are several credit score models available to credit institutions but what the latter mostly use is the Fair Isaac Corporation (FICO) model. The FICO credit score scale ranges from 300 to 850. If you get a score lower than 600 on this scale, you would have very little chances of obtaining a loan. If you score anywhere from 641 to 680, your chances of approval would improve, but interest charges would most likely be on the high end. If your score is somewhere in the 641 to 680 range then you would very probably do well. Your loan application would have a high chance of getting approved with good terms, although the outcome could be even better with a higher score. If you score anywhere between 681 and 720, you would have a very good opportunity of getting your desired borrowing terms.
The best score possible is in the range of 720 to 850. With this score, you could more easily obtain any kind of loan with ideal financial terms.
If you find that you're on the low end of the credit score range, don't despair, as there are ways to bring up your scores to a more favorable one.
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For more credit score range info, please go to http://mycreditscorerangeguide.com/
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