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The Fair Isaac Corp. was the first to use a system of credit scoring. Thus, FICO scores are the same as credit scores. This numerical value is assigned on the basis of debts paid punctually and how much debt is paid. Anything below 500 is next to impossible. Scores in range of 500-579 are a bad score. This translates as very high rates of interest when one applies for taking out a loan. 580-619 is also poor rating. So, at this juncture, one should start thinking of repairing their credit. Anything between 620 and 679 is average.
Good scores are those that fall in range of 680-719. One can expect decent terms of lending at this stage. It becomes relatively easier to refinance and finance for mortgage. With such a score, consumers can be selective about the potential lender they choose. Banks tend to compete for business when one has a score like this. This leaves room for more choice and one is able to find an option suitable to one’s requirements. Anything above 719 is thought to be excellent. One is open to the world of best rates of interest, best terms of payment and financial access.
One can improve and maintain one’s FICO score by being aware of what good credit ratings are. One is encourages to pay bills punctually. One is advised not to exceed credit limits on their credit cards. Besides, one should not stock a big amount of credit applications within very short duration of time. One should strive to keep the credit balance well below fifty percent of the level of credit available in order to improve one’s score.
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