Lenders consider fair credit to be "good" credit. Below are some reasons you might consider having a credit rating 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 discuss why. Also, learn how to 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 are more likely to consider you fair if you have credit scores between 500- 669. Your credit score is not yet in the "excellent" range, but it is far better than a score of 400 or lower. Although the average U.S. credit score is 716, you'll find lenders approving you for a loan if your score is within that range. The interest rate you pay will be higher for someone with a lower score than you.
Better than credit card debt
A fair credit score falls somewhere between 580-669 according to the FICO scale. Although below the average, a fair credit score is still better than bad. 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. Nevertheless, it is important to note that fair credit does not mean that you have poor credit - it is a necessary step to establishing good credit.
It can help you get a mortgage
If you believe that you aren't eligible for a mortgage because your credit score is too low, you're mistaken. While you may not be considered among the credit elite you still have the chance to get a mortgage. Your application may not be considered complete if you have failed to pay or missed late payments. In fact, savvy lenders are looking for people with your credit score. 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. A fair credit score is 700 or higher. You may have trouble getting approved if your credit score falls below 700. The better your score, however, is the best. Here are some tips to help improve your score and find the best auto loan for you.
It can help to get a student Loan
There are many things you can do if your credit score is low and you are trying to get a loan for student. Many private lenders will use soft credit inquiries to preapprove applicants for a loan. These inquiries don't impact your credit score. However, they can reduce your chances to be approved for a mortgage loan. These tips will help improve your credit score to ensure you get the loan you want.