What is a Good Credit Score?
There will be many people around the world asking what is a good credit score? While this is something that you should ask and aim to be within that bracket, you will also need to consider the fact that just because you have a good credit score, it does not mean that you will be able to gain credit from all lenders.
When asking Fair Isaac what is a good credit score, you will find that the answer is anything 620 and above. However, a consumer should aim to be in the high 700s, which is around 770 and above; this will mean that you are more likely going to be accepted for credit.
It is worth noting that a good credit score changes on a regular basis. The problem is that as the economy changes, the credit score ratings also need to change. The 760 score is what 720 used to be. This could mean that there are hundreds that used to have a very good credit score but now only have a good credit score; this can change their chances of gaining approval from some credit agencies.
Rather than looking into what is a good credit score, you should look into the score that companies would like to see. If you have 620 or above there are chances that you will be approved credit but this will not be from all lenders. There are some companies that will require you to have a score of 770 or above while there are others that will be willing to approve someone that has a credit score of at least 720. These companies will be happy to state what they will require, as long as you look around and know the questions to ask.
Also, you will need to look at the interest rates on credit cards and low. Just because you have found out what is a good credit score, it does not mean that you will get that low interest loan. However, the creditor may be happy to offer you a loan at a higher interest rate. This is definitely something to consider, especially if you really do need that loan. There are also some lenders that will offer different types of loans and mortgages, such as tracker interest rates or fixed rates, depending on the score that you have.
However, one thing that can be certain is that if you have a score below 620, you will be considered as a high risk and will struggle to gain any type of credit. Because of this, it is worth looking into ways to improve your credit score before you attempt to gain any type of credit; this may take some years but it will be worth it when you are able to get a better deal on a loan, mortgage or credit card. There are a variety of ways that you can improve your credit score and it is not just about clearing all of your debts; take some time to find out what will work best for you.