What A Good Credit Score Is
Posted at by ifydcat on category CreditDo you sometimes wonder what a good credit score is? When you are on the verge of getting a loan, you will find yourself asking this question. But while a range of scores may be considered good for a particular loan, there is no fixed number that applies to all types of loans. Depending on the type of loan you want to get, a score of 700 may be considered good.
It is really important that you have a good credit score. You would be paying lower interest rate if nothing else. Let’s say your 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. Thus you would be paying about $1,520 each month.
What 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.
A good credit score would not only give you the liberty to compare and chose the best loan on offer, it would also give you the added advantage of getting low interest loans. This is what I generally advice people to do. Do not be in a hurry when searching for the right loan. Never fail to do a comparison of the various offers you get.
What if your credit score is really bad, let’s say 400? Do worry since all hope is not lost. Even so, you still have lenders who are ready to give you a loan. The problem is that you will have to pay a much 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.
Apart from knowing what a good credit score is, you should know how to repair bad credit. If you have the ability to read and understand English as well as follow simple instructions, then you can repair your credit yourself. What you need is 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.