A fair credit score can be considered "good" credit by most lenders. Below are reasons to think about a credit score between 695- 749. A good credit score is important if you want to purchase a house, apply for a loan on a vehicle, or get a mortgage. This article will help you understand why. Find out how you can improve your score. Continue reading to find out more about the advantages of a good credit score.
Lenders regard a high credit score as good.
If you've got a credit score between 500 and 669, you are considered "fair" by lenders. While your credit score is still below the "excellent" category, it is still far better than a subprime score, which is in the 400s. The average U.S. credit score of 716 is acceptable, but lenders will approve loans for you if you score within this range. But, you will pay a higher interest rates than someone with a good credit score.
Better than bad credit
A fair credit score falls somewhere between 580-669 according to the FICO scale. Although lower than the average score, a fair credit rating is still better then bad. In fact, almost all Americans have a decent credit score and will eventually achieve a great one. In fact, the average FICO credit score in the U.S. will be 716 by 2021. Fair credit does not necessarily mean that you have bad credit. In fact, it is necessary to establish good credit.
It can help you to get a mortgage
Your credit score is not the only reason you might not be able to get a mortgage. While you are not among the credit elite, you still have the potential to qualify for a mortgage. Your application may not be considered complete if you have failed to pay or missed late payments. Smart lenders will consider applicants with a high credit score. Although "fair credit", as the name implies, is not a precise term. There are many options available that could help you qualify to mortgage.
It can help you get a car loan
Your FICO score is important when you are shopping for a car-loan. This number is used by most lenders to base their decision. A credit score of 700 is considered fair. You may have trouble getting approved if your credit score falls below 700. The better your score, however, is the best. These are some ways to improve your score and get the best car loan deal for you.
It could help you get a loan for student loans
There are things you could do to improve your credit score if a student loan is something you are considering. Soft credit inquiries are used by many private lenders to preapprove applicants for loans. These inquiries do not affect your credit score, but they can affect your chances of getting approved for a loan. Here are some tips that will help you improve your credit score so you can get the loan you need.