What Do Credit Scores Mean?

Don’t you know that a credit score of 680 is still a poor credit score? A credit score is one of the most important numbers in your life because it determines and represents your ability to pay and income is not a factor in determining your credit score. Experian, TransUnion and Equifax are the three credit bureaus that keeps your credit score information. These three credit record bureaus are using a standard credit score scale known as the FICO (Fair Isaac Co.) where the credit score ranges between 300 and 850. This is what your credit score means.

1. Below 550: Very bad credit. A score below 550 is a very bad credit score and it is difficult for a homeowner with a credit score as low as this to obtain a loan from lenders. In this case, a homeowner should consider a credit repair before applying any types of home loan.

2. 550- 680: Poor credit. Obtaining a loan is with a kind of credit score that fall within this range are still difficult because not so many lenders are willing to approve a home loan application with this credit score. But if there are any, the rates would be very high.

3. 620- 679: Reasonable Credit. Borrowers with credit scores that fall within this range can obtain loans but there is no guarantee that they can get the best interest rates.

4. 680 – 699: Good Credit. Credit scores within this range can be approved with mortgage loans that have favorable terms.

5. 700 – 850: Excellent Credit. A credit score within this range puts a homeowner in an excellent position. They are surely qualified with very good terms with the lowest interest rates.

According to FICO, the average credit score for Americans is about 723. With this score, they are evaluated by banks, financial institutions and credit card companies whether they can be qualified for mortgage loans, as well as what credit rates and limits should they be offered.

If you have plans in buying a property at Homes in Baltimore Maryland MD, know your credit score first. Knowing what your credit score means puts you in the advantage position and allows you to make better decisions whether to pursue your dream of buying Ogden Utah Homes for sale or wait to build your credit score.

This entry was posted in Real Estate and tagged credit bureaus, credit ccore, credit report, credit score, home loan, loans, mortgage, mortgage loan, property loans, Real Estate. Bookmark the permalink.

Comments are closed.