The economic climate has been set up to lower the lines of personal credit for individuals in order to prevent significant losses of uncollected debt. However you might what is my credit score good enough to receive good interest rates? What is a good credit range to have? Though there is subjectivity to what defines a good credit card range, most lenders agree on the general range. Overall a score of 600 and below is considered a poor credit card score.
720 and above: Great Credit score
A credit score of 720 and above opens you up to the best interest rates available and term out there. Many lenders will be happy to lend you money and thus negotiation for the best interest rate is high. A credit score this great shows lenders that you are a very reliable individual by making you payments on time. This past payment will also reflect your ability to make future payments on time. At a score of 720 and above, is it easy to get a mortgage at a good rate. Later on it will also be much easier and acceptable to refinance your mortgage to get even better interest rates. The savings over the life of the mortgage can easily range of tens of thousands of dollars to hundreds of thousands.
680 – 719: Decent Credit score
A credit score of 680 to 719 can also be positive news for you. You can still shop around for lenders and negotiate for better terms and interest rates. Many lenders consider this a good credit card range to have. Though your bargaining power is less than a score of 720 and above, you can still get acceptable rates for a mortgage. At this point it is easier to improve your credit score and get an even better interest rate.
620 – 679: The Minimum Credit score
To lenders, this is the bare minimum credit score needed in order to receive fair and acceptable interest rates for mortgages. You can still receive fair financing for smaller items. There is little room for negotiation because this is several steps away from a great credit score. Lenders will see you as having some risk and giving you a higher interest rate for mortgages. However this interest rate is still manageable and it is easily for you to take steps to increase your credit score.
580 – 619: A poor score
A credit score at this range will limit you to very few choices. There may not be a problem receiving loans but you definitely will not receive the interest rate that you hoped for. There will also be numerous other chargers as well such as financing charges and upfront fees. Many lenders will consider you high risk and a rather unreliable individual. For auto-financing, this score is also the absolute lowest to receive decent interest rates. Anything lower and auto-financing may not even be available to you.
579 and below: An undesirable score
A credit score below 579 is considered highly undesirable and in the very bad range. A score this low will typically cost you big time. Often interest rates for mortgages will be 3-5 percent higher than great credit score. You may not think that that is that much more but considering a 30 year or 15 year mortgage, that is exceptional high. Even shorter loans that typically have lower interest rates will be much high for you. Some lenders will not even accept you or offer very small credit limits if you have a score this low. Simply the fees alone are huge.
Generally speaking you want to avoid credit card ranges of less than 600. A score below 600 have many terms you have to follow such as strict payment guidelines. Scores below 600 are also limited to the number of lenders who are willing to accept them and will receive very high interest rates. However raising your score to a good credit card range can be easy. Visit for a free credit checkup today!