Hurt Credit Score Article
Where Are You On The Credit Score Range?
There is a range used to define credit scores that the credit bureaus use. The score can be between 300 and around 850. The Fair Isaac Corporation uses the same type of scoring system.
The range is quite diverse. You will want to have a higher number such as 700-800 so that you can obtain credit easily. If you have a very low score such as 300, you will have a great deal of difficulty obtaining credit.
However, take this information with a grain of salt. The score does not provide the entire picture. Most creditors look at a multitude of variables before making a decision about credit worthiness.
If you have a good credit score of about 700 or higher you are considered an excellent risk and will most likely be granted credit with very low interest rates.
Even if you have a score in the 600 range, you should not have any trouble obtaining credit. You should not have to pay high interest rates for a loan.
The range of 600 to 680 is considered average. The majority of people across the country have this range. You will most likely obtain credit approval but may have stricter rules and standards for the loan.
A low credit score is a bit more complicated. If you have a score below 600, you certainly can get a loan but at a higher interest rate. There are certainly lending institutions that will offer you loans, but they will be on their terms. You may feel like they have all the power, and actually they do because they can deny you credit.
If you have a very low score you may have some trouble obtaining credit but, you will most likely find a lending institution that will lend you money, or give you credit, for a price. A very high price! You may think, is it worth it?
It may not be. You may want to wait and save your money rather than borrowing from them. Or, you may want to improve your credit by borrowing from them and paying them back right away, so you do not end up paying high interest charges.
Or, you may want to pay more than what the monthly requirement is. The credit card company mostly likely will keep track of the payments you make and will hopefully take notice when you pay more than just the minimum requested. You want to show them you deserve more credit since you voluntarily pay more than you would have to and that you are a good credit risk.
Some people say that credit cards are a necessary evil because you never know when you may have an emergency and not have any money.
