Today it is impossible to avoid the impact of credit scores on how you can live your life. The type of house you live in and the car you drive will more than likely be governed by your credit score. If you don’t know what your number is, get your free credit score first.
Top of the Class 741 to 850 Scores
Basically, subject to your personal income, you will have no problems obtaining credit. With a credit score in this range, lenders will be falling over themselves to lend you money, and at very attractive rates.
Doing Well 701 to 740 Scores
There is little likelihood you will have any problems obtaining a credit card, loan or mortgage. Rates offered will be competitive and you are seen as a good risk.
Dangerous territory 600 to 700
Your credit score is not very good, but not a disaster. Lenders will view your credit score as implying you are a higher risk than most, so be prepared to be either turned down or offered a less competitive interest rate. All is not lost though as if you maintain your current credit and ensure all payments are regularly met, if you can also reduce a line or two of credit, you could, within a year, see your credit score increase and loan offers become available you currently cannot get.
Bottom of the Class Below 600
This is intended as a guide and don’t forget that varying credit score companies use different methods to calculate scores. Consequently, while it is an accepted rule that a credit score below 600 will mean it is virtually impossible for you to obtain credit, it may not be completely hopeless.
Useful Hint: If you find you have been refused credit, ask what you have to do to and how long you should wait before reapplying.