A fair credit score is considered "good" credit by many lenders. Below are reasons to think about a credit score between 695- 749. A fair credit score is better than bad if you're looking to buy a home, get a loan for your car, or apply to mortgage. This article will discuss why. Also, learn how to improve your score. Read on to learn more about the benefits of a fair credit score.
Lenders regard a high credit score as good.
Lenders consider your credit score fair if it is between 500 and 669. Even though your credit score falls below the "excellent", it's still better than a subprime score that is in the 400s. Although the average U.S. credit score is 716, you'll find lenders approving you for a loan if your score is within that range. The interest rate you pay will be higher for someone with a lower score than you.
Better than having good credit
Fair credit scores are between 580-669 on the FICO scale. Although lower than the average score, a fair credit rating is still better then bad. Most Americans have a fairly high credit score, and they will eventually be able to get a better one. According to FICO, the average credit score in the U.S. is 716 by 2021. Fair credit doesn't necessarily mean you have poor credit. It's a necessary step in building good credit.
It can help you get a mortgage
Your credit score is not the only reason you might not be able to get a mortgage. While you may not be considered among the credit elite you still have the chance to get a mortgage. You may have missed payments or late payments, but that doesn't mean your application is worthless. Smart lenders will consider applicants with a high credit score. Although the term "fair credit" is vague, there are several options that can help you qualify for a mortgage.
It can help you get a car loan
FICO scores are crucial when shopping for car loans. Most lenders will base their decision on this number. Fair credit scores are over 700. But, even if your score is in the upper half of this range, you might still have difficulty getting approved. Your score will be higher the higher you are. Here are some tips to help improve your score and find the best auto loan for you.
It can help with student loans
You can improve your credit score if you are interested in a student loan. Soft credit inquiries can be used by private lenders to preapprove borrowers for loans. Although these inquiries won't affect your credit score they could affect your chances of being approved for a loan. These tips will help improve your credit score to ensure you get the loan you want.