What Is A Good Credit Score?
Have you ever wondered what a good credit score is? When you are on the verge of getting a loan, you will find yourself asking this question. Even though a range of scores may be seen as good for a particular loan, no fixed number applies to all types of loans. Having a score of 700 may be considered a good score depending on the type of loan you are looking for.
One thing that cannot be overemphasized is the value of having a good credit score. You would be paying lower interest rate if nothing else. Let’s assume that you credit score is 760. For a 30-year fixed mortgage of $300,000, you could get an interest rate of 4.5% or a little less. Then you would be paying about $1,520 per month.
What happens if you have a credit score of 620? You would hardly get a loan with an interest rate that is below 6%. That would shoot up your monthly payment to about $1,800 – an extra $280 per month!
Having knowledge of what a good credit score is for the type of loan you want to get is important. This will help you tell in advance what interest rate you should expect. This will help you bargain with your lenders.
You would have the freedom to compare one loan to another and chose the best on offer. Thus you can get a loan with a low interest rate. This is what I generally advice people to do. Do not be in a hurry when searching for the right loan. Do not fail to compare one offer to another if you have a good credit score.
Assuming your credit score is 370, what happens? Do worry since all hope is not lost. You would still find lenders who are willing to give you a loan. There is one problem with this, and that is you would have to pay a higher interest rate and put down a large down payment. If that doesn’t sound appealing to you (would anyone find that appealing?), this leaves you with the option of fixing your credit score.
You should know how to repair bad credit besides knowing what a good credit score is. If you have the ability to read and understand English as well as follow simple instructions, then you can repair your credit yourself. You need the right information. Having the right information would help you raise your credit score in a matter of months.
But what if I told you that you can fix your credit yourself in as little as 37 days? To learn how to do this, read my 37 Days To Clean Credit ebook review.