Have you ever asked what a good credit score is? When you are on the verge of getting a loan, you will find yourself asking this question. Even if a range of scores may be seen as good for a specific loan, no fixed number applies to all types of loans. Depending on the type of loan you want to get, a score of 700 may be considered as good.
It is really important that you have a great score. You would be paying lower interest rate if nothing else. Let's say your 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. So you would be paying about $ 1,520 each month.
What happens if you have a score of 620? Do not expect to get a loan with an interest rate below 6%. That small difference is actually much because now you will be paying about $ 1,800 per month instead of $ 1,520 (an additional $ 280 per month)!
Knowing what a good credit score is for the type of loan you want is important. This will help you determine in advance the interest rate to expect. This will help you bargain with your lenders.
You would have the freedom to compare one loan to another and chose the best on offer. So you can get a loan with a low interest rate. It is advisable that you do this. Never hurry when finding the right loan. Never fail to do a comparison of the various offers you get.
What happens if your score is really bad, say 360? But there is still hope, so do not despair. You would still find lenders who are willing to give you a loan. This will result in two problems: You would have to put down a large down payment as well as pay a higher 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 can read and understand English, you can fix your credit yourself. You need the right information. Having the right information would help you raise your credit score in a matter of months.