Lenders consider fair credit to be "good" credit. Below are reasons to think about a credit score between 695- 749. If you are looking to buy a house, get a car loan, or apply for a mortgage, a fair credit score is better than good. This article will tell you why. Find out how you can improve your score. You can read on to discover the many benefits of having a good credit rating.
Lenders view a good credit score as a positive sign.
Lenders consider you fair if your credit score is between 500-669. While your credit score might not be in "excellent" territory, it is still much better than subprime scores, which are in the 400s. Lenders will approve your loan application if your credit score is in the 700-700 range. The interest rate you pay will be higher for someone with a lower score than you.
Better than bad credit
A fair credit score ranges from 580 to 669 on FICO's scale. Although it is not the best credit score, it is better than bad. Most Americans have a fairly high credit score, and they will eventually be able to get a better one. By 2021, the average FICO credit score will be 716. Fair credit does not necessarily mean that you have bad credit. In fact, it is necessary to establish good credit.
It could help you obtain a mortgage
Your credit score is not the only reason you might not be able to get a mortgage. While you may not be considered among the credit elite you still have the chance to get a mortgage. You may have missed payments or late payments, but that doesn't mean your application is worthless. Smart lenders are seeking people with good credit scores. Even though the term "fair credit", is vague, there's a lot you can do to help you qualify for a loan.
It can help with getting a car loan
FICO scores are crucial when shopping for car loans. This number will influence the decision of most lenders. Fair credit scores are above 700. But, even if your score is in the upper half of this range, you might still have difficulty getting approved. Your score will be higher the higher you are. Here are some tips to get your score up to par and find the best car loan for you.
It could help you get a loan for student loans
There are several things you can do to improve credit scores if you're looking for student loans. Soft credit inquiries can be used by private lenders to preapprove borrowers for loans. Although these inquiries won't affect your credit score they could affect your chances of being approved for a loan. Here are some ways you can improve your credit rating and get approved to receive the loan you need.