Before comparing your credit score ranges, you need to know the scoring models. In the USA, FICO and Vantage Score are the 2 most common scoring models that have arranged between 300 to 850. Now, you need to evaluate what ranges in this series are considered to be good or bad. Is there an average score in between? Let’s find out.
Now, let’s start with the ranges that most people fall in. We here evaluate each range and tell you the further course of action accordingly. Relate to what range of credit score you generally have.
If we consider the statistics from the report of 2019, the average score was 706, which is impressive. Any number above 700 can be an excellent score if you consider this population. However, if you fall below 650, the banks might straightaway deny sanctioning large amounts.
Only 20% of people had less than 600 credit score whereas more than 25% of people hovered between 600 and 700. Then came the lushest population more than a score of 700. However, only a few fell in the fourth category, that was from 720 to 780. Only 1% of the population was above 800.
People who fall in the fourth category need not take any step. 740 is a good credit score for all those who do not need loans very frequently. However, if you are a frequent borrower, you need to have the best credit score that is more than 780. For this, your repayment habits have to be planned.
For the first category, you need to consult a credit repair company to audit your credit report. These are the people who have probably never assessed their credit report and filed for disputes. So, a credit repair company can detect all the false negative information and probably cut it out from your records.
The second category also needs to do the same but on a smaller scale. Especially if they want better interest rates and lesser formalities in the process of sanction. Always look for upgrading yourself to the next category and eventually you will see a better standard of living for yourself and your family.
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