For example, a bankruptcy or foreclosure will damage your score. There are many things that can wreck your credit score. Fair Credit Score (580-669)Ī fair credit score means that your financial situations are not looking good. This is why they will charge you more on the loan. However, there is a chance that you can step off the ladder and fail to pay them back. Lenders believe you can take care of your finances most of the time. For example, you can qualify for a conventional mortgage with this credit score.Ī good credit score range is not good enough to give you the best interest rate. However, you will pay more interest on the loan. You will be qualified for many loans with this credit score range. However, you are not perfect when it comes to credit limit use, paying on time, derogatory marks, har inquiries, etc. This range means that you are an OK borrower. As a result, they will give you a loan with the second-best interest rate. Moneylenders will be optimistic about you, and therefore, trust you with their money. You also avoid anything that can jeopardize your financial report. You pay your bills on time and have no outstanding balances on your report. Very good Credit Score (740-799)Ī very good credit score means that you are a responsible borrower and you treat debt with care. You will also get the best interest rate on your mortgage or loan from your lender. Keep in mind that there are other factors that apply when determining your qualification on loans. With this score, you can be qualified for almost every loan possible. Learn more about factors that can affect your credit score. In general, you excel on factors that affect credit score. It could also indicate that you did not have any foreclosure or bankruptcies in recent times. That is, you pay all your bills on time, use your credit cards with caution, and focus on building your credit score. This range demonstrates that you use debt wisely. It means that you are among the top borrowers on the market. The excellent credit score range is the highest credit score range possible. 13 reasons you are not ready to buy a houseĥ.18 mistakes to avoid when buying a house.74 Things to look for When buying a house.
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