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Credit Scores and What They Mean

Credit Scores and What They Mean

Your credit score is one of the most critical numbers in your financial history. Your credit score is based on a series of variables, such as the number of accounts you have and your payment history. Your credit score will determine your approval options, and it will determine the interest rates you will qualify for on loan repayment. If you don’t know what your credit score is, it’s a good idea to check it so you can get an idea of what your credit approval options will be.

Where Can I See My Credit Score? 

There are many sources from where you can order your credit score. You can check your credit score for free on the following services: Quizzle.com, WalletHub.com, CreditKarma.com, or CreditSesame.com. But for a more comprehensive picture, you can purchase it from one of the major credit bureaus such as Experian, TransUnion, or Equifax. 

To make things easier for you, we’ve arranged these scores, so that you can get a clearer picture as to what these numbers represent. 

Exceptional Credit Score: 800  850 

Anything that’s above 800 is considered exceptional and represents a person with no history of late payments and low balances on their credit cards. These people are considered to be low-risk.  

Very Good Credit Score: 740 – 799 

A person with a score between 740 and 799 is seen as generally responsible with their finances. Most of their payments are made on time. Likewise, their credit card balances are relatively low when compared to their account limits.  

Good Credit Score: 670 – 739 

This credit is seen as slightly above the average of the US consumer. These people have access to competitive interest rates but are unlikely to receive the same rates as those in the higher credit approval categories. They may also find it more challenging to qualify for certain types of credit.  

Fair Credit Score: 580 – 669 

These scores indicate someone with some minor issues in their credit history but with no significant problems or delinquencies. They are still likely to receive credit from lenders but not at competitive rates.  

Poor Credit Score: 579 or Below 

A credit ranging anywhere between 579 and 300 is representative of someone who has defaulted on their credit multiple times and from numerous lenders. A poor score may also be indicative of someone who underwent bankruptcy, which will remain on record for up to 10 years. It’s highly advisable to talk to a financial advisor to help you get back on track.  

No Credit 

A credit score under 350 usually indicates someone who hasn’t yet established a credit score and doesn’t have a credit history. When you get approved for your first credit card or loan, develop a payment plan and make payments on time. It is important to know that you can buy your first car with no credit history.  

Conclusion 

At Advantage Car & Credit, our financing team will help you with all of your credit approval needs. Our dealership has access to a wide variety of lending sources, thus providing you with more options than anywhere else. Visit our website for more information.  

 

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