Your Credit Score – Find Out If it is Good
Your credit score is a measure of how risky finance companies see you. It is a score that all companies will consider when you apply for a loan, credit card or mortgage. The higher the score, the more willing companies will be to lend you money. The more willing they are to lend you money means they will offer you loans with lower interest rates which means you will save money.
According to Experian (one of the worlds biggest credit rating agencies) the average score of American resident credit scores was 678.
If your score is below 620, then you might have a tougher time getting a loan and would almost certainly be able to benefit from cheaper credit by repairing your credit score and then seeking to refinance your existing debts.
What is a good credit score?
The following can be used as a guide to indicate how lenders view your credit score and tell you where you stand in relation to the average.
- 720-850 – Excellent – This represents the top score and qualifies you for the best financial deals.
- 700-719 – Good – This is a great score and will still enable you to get cheaper finance than most people.
- 675-699 – Average – A score in this range will usually qualify for most loans and credit cards available to the general public.
- 620-674 – Sub-prime – This means you are below average. You may not be able to get all loans available in the market and will most likely have to pay a higher level of interest.
- 560-619 – Risky – You will have trouble obtaining a loan and should consider working to repair your credit score before it deteriorates any further.
- 500-559 – Very Risky – At this level you will find it very difficult indeed to get credit. You need to do some work in order to repair your credit score.
For more information on credit scores or getting refinance with bad credit please click one of these links.
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