A fair credit score is often considered to be "good credit" by lenders. Below are some reasons you might consider having a credit rating between 695-749. A fair credit score will help you get a mortgage, car loan or house purchase. This article will help you understand why. Learn how to improve your credit score. Continue reading to find out more about the advantages of a good credit score.
Lenders regard a high credit score as good.
Lenders are more likely to consider you fair if you have credit scores between 500- 669. Even though your credit score falls below the "excellent", it's still better than a subprime score that is in the 400s. Lenders will approve you for loans even though your credit score is below 716 in the United States. But, you will pay a higher interest rates than someone with a good credit score.
Better than credit card debt
Fair credit scores are between 580-669 on the FICO scale. Although below the average, a fair credit score is still better than bad. In fact, almost all Americans have a decent credit score and will eventually achieve a great one. By 2021, the average FICO credit score will be 716. Nevertheless, it is important to note that fair credit does not mean that you have poor credit - it is a necessary step to establishing good credit.
It can help with getting a mortgage
If you believe that you aren't eligible for a mortgage because your credit score is too low, you're mistaken. While you are not among the credit elite, you still have the potential to qualify for a mortgage. Your application can still be approved, even if you've missed payments or made late payments. Smart lenders will consider applicants with a high credit score. Although "fair credit", as the name implies, is not a precise term. There are many options available that could help you qualify to mortgage.
It can help you get a car loan
When you're shopping for a car loan, your FICO score is crucial. The majority of lenders base their decision on this number. In a nutshell, a fair credit score is above 700. Even if you are in the lower end of the spectrum, getting approved may be difficult. The better your score, however, is the best. These are some ways to improve your score and get the best car loan deal for you.
It could help you get a loan for student loans
You can improve your credit score if you are interested in a student loan. Many private lenders will use soft credit inquiries to preapprove applicants for a loan. These inquiries don't impact your credit score. However, they can reduce your chances to be approved for a mortgage loan. Here are some tips to improve your credit score and ensure that you are approved for the loan you need.