Understanding the credit score scale is important to qualifying for credit cards, mortgage loans, personal loans, and auto credit. Most people will use this type of credit often throughout their lifetimes. There are different types of credit score scales depending on the type of loans you are trying to qualify for and may very a little among lenders. For example, to get the best auto credit loans some lenders may require a 740 score.
- Excellent Credit 720 to 850
- Very Good 680 to 719
- Good 660 to 679
- Average 620 to 659
- Needs Work 580 to 619
- Poor 579 and Below
An excellent credit score will get you the best mortgage rates and most promo rates for auto credit and personal loans. If you are close sometimes just keeping lower balances or increasing limits on credit cards will get you there.
In the very good credit score range you will still get great rates and will qualify for most loan offers. Some minor adjustments and a little time will easily get you above the 720 excellent credit range.
Good scores from 660 to 679 will still qualify for most loan programs at a slightly higher interest rate and you may have to make a larger down payment.
The average credit score may not qualify for all loan programs and credit card offers. You will have to put more money down and get lower credit limits at substantially higher interest rates.
Credit scores below 580 will no longer qualify for mortgage loans. If you are considering buying a home you will need to work on reducing credit card balances or increasing limits to improve your credit score. Don’t payoff old collections since this may move the last activity date to the present time and lower your score.
Poor credit may take a lot of hard work and some time to improve. Credit repair should be considered before applying for new credit. Car loans and credit cards are still possible but at extremely high interest rates. Usually scores below 579 contain multiple collections and charge-offs.
Staying on top of your credit score is more important than ever since many employers may not hire candidates with a below average credit score. Consider a credit monitoring service to help you stay on top of things and alert you of any issues. Many of the services have tools to help improve credit over time. [ad#3]