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Those three numbers can determine your loan utility success rate and how much interest you pay.
Even though there are different models, most lenders use FICO or VantageScore.
This step-by-step guide explains the range of credit scores and includes quick tips for improving your score.
What Are Credit Score Levels?
Credit scorelevels range from poor to excellent.
Scoring model companies use data to determine your score.
Good To Know
The closer your score is to excellent, the more financial opportunities youll have.
FICO Score Ranges and What They Mean
TheFICO scoring modelhas five different score ranges.
The ranges provide a simple way to understand your score.
Borrowing money is more expensive and might not be possible with every lender.
Getting loans or credit cards is usually more complicated, and lenders might deny your tool when you apply.
You may have to settle for a high interest rate or use a secured credit card to borrow money.
580-669: Fair Credit
Scores between 580 and 669 are in the fair range.
But you wont usually be able to get the best terms.
you’ve got the option to also get competitive interest rates that will help you save money.
Once youre in this range, one of the biggest differences is that youll have options.
740-799: Very Good Credit
Borrowers with very good credit have scores between 740 and 799.
As an added perk, youll also be able to get higher credit limits.
Finding solid loan products is much easier when your credit falls within this range.
You also have higher chances of approval for premium credit cards and mortgages.
What Affects Your Credit Score?
Different factors impact your credit score.
How Do Credit Score Levels Affect Your Financial Life?
Even though its just a number, credit scores impact your life.
you might take the following steps to improve your score.
Step 1: Pay Bills on Time
On-timebill paymentshelp increase your score.
Youll also avoid late payments and interest fees, so its a win-win.
For example, imagine you could access $10,000 of credit through cards and loans.
If you only owe $3,000, you have a utilization rate of 30%.
you’ve got the option to dispute the error with the credit bureaus If anything is inaccurate.
Opening too many new accounts can hurt your score.
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