Credit is now a necessity for all of us to survive in this world. Not even countries can thrive without credit. At every stage of life, we, as individuals, need credit to meet our wants. Everyone wants it, but few get it.
So who determines how much amount must be sanctioned to each individual? On what basis is it approved? Only one factor determines your access to credit and that’s your credit score range. If you fall into a good range, you get good credit. If your credit score range is low, it becomes quite intricate to avail a loan.
So what the different credit score ranges?
Excuse my impertinence, but this is probably the worst range and people in this category have a very stressful life. If you are in this category and if you apply for a loan, any loan, or even a credit card, it’s very likely that you request would be rejected. If it’s approved, however, the interest rates would be too high.
500 – 580
Though this cannot be considered to be a good score, it is a bit better than the previous range. Your loan requests would be approved but you cannot negotiate better terms. This score would also affect your chances of getting a job and place to live in, as the score says a lot about your creditworthiness.
580 – 619
If you are in this category, you aren’t in a ‘low’ category anymore. Loan rates would be bit higher and procedure would be quite easy. This is, however, not yet a safe credit score range to be in. This is a brink which might fling you in any direction. Nothing in this range is predictable. Some might consider it be a good score, some might not. Hence, it’s better to improve.
620 – 679
You are officially in a good range if your score is above 620. Although you wouldn’t receive the most lucrative offers, it would still be a good bargain. Things wouldn’t be much difficult for you.
680 – 699
This credit score range is an average range of an American. If you are in this category, things are pretty normal. None of your application, for loans, for jobs or for residence, would be rejected due to insufficient credit score.
700 and More
People who have never missed out on payments of bills, and have always maintained a good payment record enjoy the privilege of receiving the best deals on almost anything because they now have the most powerful negotiating tool.
READ ALSO: How to Obtain A Free Credit Report Online?