What Is A Good Credit Score

"What is a good credit score" - a question consumers are asking today, as the Internet has opened opportunities for consumers to better evaluate their personal reports. Years before, consumers had been left in the dark as they simply were denied or extended credit based on a lender's judgment of an account summary. People could request a copy of their report, if denied, to make sure that the information listed was valid. Beyond the difficult task of having invalid information removed, consumers were left helpless to do anything about the intricate numerical scoring systems used by three major bureaus.

As people have obtained more financial savvy with the incredibly information-vast Internet, the "what is a good credit score" question has opened up an entire host of financial companies that are helping consumers interpret their accounts and understand the statistical numbering system attached to these them. The question everyone asks has these bureaus and the original FICO scoring system now meeting the demands of the public to explain these scores.

Typically range from a 375 to 900 points, these numbers mean very little on their own. Lenders evaluate a complete report based on other information within the context of a particular lender's own underwriting guidelines. Generally speaking, the higher a person's FICO score, the better credit risk he/she becomes. So, what is a good rating to receive? The median FICO score in the U.S. is 723. What's a reasonable rating for obtaining a good interest rate? A score of 650 and above indicates a very good financial history, allowing lenders to offer consumers the best interest rates. What is a good credit score just to receive a loan? A score of 620 to 650 indicate that the credit is basically good, but also suggest that one might be a risk.

This question allows the consumer to evaluate his or her own credit report and have a better understanding of where they should attempt to keep this number. The "what is a good credit score" question also brings the consumer the ability to track and review his or her credit report regularly. Reviewing a personal account summary's important, as one can quickly identify inaccurate information or possible identity theft. Getting information about a person's account will equip people to take charge of their financial future. Start browsing the Internet and get the information needed to properly evaluate the financial standing. "For wisdom is a defence, and money is a defence: but the excellency of knowledge is, that wisdom giveth life to them that have it" (Ecclesiastes 7:12).

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