Lenders consider fair credit to be "good" credit. 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 tell you why. Learn how to improve your credit score. You can read on to discover the many benefits of having a good credit rating.
Lenders regard a high credit score as good.
Lenders will consider you "fair" if you have a credit score of between 500 and 669. While your credit score is still below the "excellent" category, it is still far better than a subprime score, which is in the 400s. Lenders will approve you for loans even though your credit score is below 716 in the United States. A high credit score will result in a higher interest rate.
Better than having good credit
A fair credit score is between 580-669 FICO scale. Even though your credit score may not be as high as the average, it's still better than nothing. In fact, most Americans have a fair credit score and will eventually have a good one. In fact, the average FICO credit score in the U.S. will be 716 by 2021. However, fair credit does NOT necessarily mean you have bad credit. It is an essential step towards establishing 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 are not among the credit elite, you still have the potential to qualify for a mortgage. Your application can still be approved, even if you've missed payments or made late payments. Smart lenders are searching for people with high credit scores. Although the term "fair Credit" is not defined, there are many ways to get approved for a mortgage.
It can help with getting a car loan
FICO score is a crucial factor when looking for a car loan. Most lenders will base their decision on this number. Fair credit scores are over 700. You may have trouble getting approved if your credit score falls below 700. Your score will be higher the higher you are. These tips will help you get your score up and find the right car loan for YOU.
It can help to get a student Loan
If you are looking for a student loan but are concerned about your credit score, there are some things you can do to improve your credit score. Soft credit inquiries can be used by private lenders to preapprove borrowers for loans. These inquiries don't impact your credit score. However, they can reduce your chances to be approved for a mortgage loan. Here are some tips to improve your credit score and ensure that you are approved for the loan you need.