What Is A Good Credit Score?
Have you ever asked yourself what a good credit score is? If you are just about to get a loan, this question will no doubt come up. Even though a range of scores may be seen as good for a particular loan, no fixed number applies to all types of loans. Depending on the type of loan you seek, a score of 700 may be a good one.
The value of having a good credit score cannot be overemphasized. If nothing else, you would be able to get loans with low interest rates. Let’s say you have a credit score of 760. For a 30-year fixed mortgage of $300,000, you could get an interest rate of 4.5% or a little less. Then you would be paying about $1,520 per month.
But what if your credit score is 620? Don’t expect to get a loan with an interest rate below 6%. If you think that difference is minimal, think again. Your monthly payment will shoot up to about $1,800, an extra of about $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. Thus, you would be better prepared to negotiate with your lender.
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. I generally advice people to do this. 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 you have a really bad credit score, say 350? There is hope, so don’t worry. Even so, you still have lenders who are ready to give you a loan. The only problem is that you would have to put down a large down payment and pay a higher interest rate. If that does not appeal to you (who would find that appealing anyway?), then you have the option of repairing your credit score.
It is important that you know what a good credit score is. But you should also 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. You need the right information. Having the right information would help you raise your credit score in a matter of months.
What if I told you that you can repair your credit yourself in just 37 days? To learn how to do this, read my 37 Days To Clean Credit ebook review.
