What You Should Know About a Good Credit Score Range

It is important to know your credit score range; your credit rating determines whether you will qualify for a loan as well as what interest rate you will pay. A bad credit score can lead to paying thousands more in interest on loans. For this reason, and others, it is important to know what a good credit score range is.

Several factors go into making up your credit score, some of these factors are length of time accounts have been open, number of times you have made late payments, and bankruptcies. Your credit score is often referred to as your FICO score. When you apply for a loan you may be asked if you know what your FICO score is.

Experian, Transunion, and Equifax are the three major credit reporting agencies that most lenders use. These companies compile your credit history and determine a score. Each of these companies is jadwal bola separate from the others and for that reason your credit history compiled by each company may have differences.

Each of these credit reporting companies may also have a different credit score for you. Normally, your scores with all three companies will be similar, but rarely the same. Some lenders prefer one of these three major credit reporting companies over the others. There are lenders who work with only one of these companies and there are lenders who work with all three.

A FICO score can be anywhere in the range of 300 points to 850 points. With such a small number of points between the highest score and the lowest score, just a small change can have a big impact. A difference of only 50 points can have an impact upon the interest rate you can qualify for on your loan.

Between 760 and 800 points is generally considered to be a very good score; most lenders consider that score range to be very low risk. The best interest rates and loan options are available to those in this score range. Between 720 and 759 is still considered to be good and will still get good interest rates and qualify for most loan options. A score between 680 and 719 may start to present some problems because it is getting into a higher risk category for lenders.

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