Slide 2: The purpose of credit or FICO score is to give lenders a fast and accurate prediction as to your ability or likelihood of paying a loan back
Scores range from 300 to 900
Majority range from 600 to 700
What are the determining factors? : What are the determining factors? Age of your credit file
How much available credit is used
How many requests have you made for loans and/or credit cards
Mix of credit -unsecured and secured
What does your score mean? : What does your score mean? If you have over 800, that is almost perfect. You will qualify for the best rates.
720-799 is considered great - under 30% of population is in this range.
680-719 – good credit. Will still qualify for most loans. Interest rates, however, may be a little higher.
Credit Score (cont’d) : Credit Score (cont’d) 620-679 is OK credit, though it won’t qualify for best rates.
580-619 is below average. You will have a hard time securing financing and interest rates will be high.
Many consumers in the 580 range are considered subprime and have to work with bad credit lenders to secure loans.
Credit Score (cont’d) : Credit Score (cont’d) 500-579 – if you fall within this range, it is likely a result of a credit card charge off, foreclosure, or even bankruptcy.
Below 500 – forget getting a loan or securing a mortgage. You need to work hard on repairing your score!
If you would like to find out how to get your credit score for free, please visit: www.TheFreeAnnualCreditReport.com : If you would like to find out how to get your credit score for free, please visit: www.TheFreeAnnualCreditReport.com