Have you ever asked yourself what a good credit score is? When you are on the verge of getting a loan, you will find yourself asking this question. But while a range of scores may be considered good for a particular loan, there is no fixed number that applies to all types of loans. Having a score of 700 may be considered a good score depending on the type of loan you are looking for.
It is really important that you have a good credit score. If nothing else, you would be able to get loans with low interest rates. Let’s assume that you credit score is 760. If you get a 30-year fixed mortgage of $300,000, expect to get an interest rate of 4.5% or maybe less. Thus you would be paying about $1,520 each month.
But what if your credit score is 620? Don’t even try 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. Then you would be in a better position to negotiate with lenders.
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. Never hurry when finding the right loan. If you have a good credit score, never fail to do a comparison of the various offers you get.
What if you have a really bad credit score, say 350? Do worry since all hope is not lost. Even so, you still have lenders who are ready 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 doesn’t sound appealing to you (would anyone find that appealing?), this leaves you with the option of fixing your credit score.
You should know how to repair bad credit besides knowing what a good credit score is. All it takes to fix your credit score yourself is the ability to read and understand English, as well as follow simple instructions. All you need is the right information. You can raise your credit score really fast if you’re armed with the right information.
But what if I told you that you can fix your credit yourself in as little as 37 days? To learn how to do this, read my 37 Days To Clean Credit ebook review.