What A Good Credit Score Can Get You

August 30, 2024 By: Stephanie H. - CreditMonarch Online Writer0 comments

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The most widely known credit scoring model is called FICO. It states that a credit score between 670 and 739 is generally considered good. That’s on a scale from 300 to 850. FICO Scores help lenders predict the risk of a borrower defaulting on a loan. The higher your score, the lower the risk you represent to anyone who lends you money.

A higher score also makes you more likely to qualify for the best offers. The importance of good credit lies in its ability to determine whether you can borrow money and the interest you will pay. Having a good credit score can help you get approved for credit cards that have higher credit limits, additional benefits, and other incentives. In numerous states, individuals with better credit-based insurance scores end up paying less for auto insurance.

Having a good credit score can be very beneficial in many ways. For instance, it can help you get an unsecured credit card with a decent interest rate, or even a balance transfer credit card. If your credit score falls short of 700, be ready for questions about negative items on your credit record when shopping for a car. Car loans are frequently granted to individuals with significant credit issues, but it’s possible that you won’t be able to get a low rate.

A mortgage can be obtained without having perfect credit. In some cases, credit scores can be in the 500s. Credit scores determine the risk of not repaying as promised, which is why lenders give higher credit scores lower interest rates. Credit scores are used by landlords or property managers to screen tenants, but they are generally not looking for perfect scores. They’re more interested in your credit record. Having a good score is a real benefit when it comes to opening a new line of credit when needed, no matter the reason. With this flexibility, you can cover expenses in a crisis or have access to specialty rewards and travel cards. See our recommended list of credit cards for anyone who has a good credit score.

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