Know Your Credit Approval Options! Credit Scores and What Do They Mean?

The personal credit score is one of the most critical numbers that stands to represent you. It will determine your credit approval options. It's right there, alongside your social security number, your bank account balance, or your phone number. The credit score is based on a series of variables such as the number of accounts you have or your payment history, among others.

Depending on how good or bad your credit score is, your interest rates will be affected or could make a difference between having a loan approved or declined. If you don't know what your credit score is, it's a good idea to have it checked so that you can get an idea of what your creditors see when they examine your credit score.

credit chart

 

Where Can I See My Credit Score?

There are many sources from where you can order your credit score. You can check your credit score for free on these following services: Quizzle.com, WalletHub.com, CreditKarma.com, or CreditSesame.com. But for a more comprehensive picture, you can purchase it from one of the major credit bureaus such as Experian, TransUnion, or Equifax.

To make things easier for you, we've arranged these scores, so that you can get a clearer picture as to what these numbers represent.

 

 

 

Exceptional Credit Score: 800 - 850

As a general rule of thumb, every credit score that's above 720 points is considered a good score and its owner is seen as highly responsible. They also stand the highest chance of qualifying for the lowest possible interest rates. Anything that's above 800 is considered as exceptional and represents a person with no history of late payments and low balances on their credit cards. By all intended purposes, these people are considered to be low-risk. 

 

Very Good Credit Score: 740 - 799

Like is the case above, a person with a score between 740 and 799 is seen as generally responsible for their financial management. In other words, most of their payments are made on time. Likewise, their credit card balances are relatively low when compared to their account limits. 

 

Good Credit Score: 670 - 739

This credit is seen as slightly above the average of the US consumer. These people have access to competitive interest rates but are unlikely to receive the same rates as those in the higher credit approval categories. They may also find it more difficult to qualify for certain types of credit. 

 

Fair Credit Score: 580 - 669

Being slightly below average, these scores indicate someone with some minor issues in their credit history but with no significant problems or delinquencies. They are still likely to receive credit from lenders but not at competitive rates. 

 

Poor Credit Score: 579 or Below

A credit ranging anywhere in between 579 and 300 is representative of someone who has defaulted on their credit multiple times and from numerous lenders. A poor score may also be indicative of someone who underwent bankruptcy and which will remain on record for up to 10 years. There is little to no chance of getting new credit in this situation, and it's highly advisable to talk to a financial advisor to help you get back on track. 

 

No Credit

no creditA credit score, typically under 350, usually indicates someone who hasn't yet established a credit score and doesn't have a credit history, to begin with. When you do start and get approved for your first credit card or loan, it's best to set up a suitable repayment plan so that you establish a good credit score, immediately. What's equally reasonable to know is that you can also buy your first car with no credit history.

At Mike Duman Auto, our financing team will help you with all of your credit approval needs. Our dealership has access to a wide variety of lending sources, thus providing you with more options than anywhere else. Visit our website for more information or call one of our finance managers today, 888-523-1142.