Your Fico Score...Where Do You Sit

Your FICO score has become the standard for evaluating your credit worhtiness and is widely accepted by most lenders. It was developed in the late 1950s by the Fair Isaac & Co. and the FTC finds this credit score to be a fair judge of your credit. With this method, your credit history is condensed into a single number. The FICO score range is between 300 and 850 points.

The Higher Your FICO Score The Better

If your FICO score is above 750 that is considered excellent and if it ranges from 720 to 750 your score is rated as very good. If you have an excellent rating most lenders will give you a better interest rate or a discount.

If your FICO score falls between 680 to 699 your score is still considered good. This means you can qualify for a normal loan. Your rating is still okay or acceptable if your FICO score range from 620 to 679. Some lenders won't deny you credit or a loan application but most likely the terms and offers will not be as liberal if your score was at a higher range. However, even at this level you are still considered a low risk loan candidate.

If You're Sitting At The Low End of the FICO Score Range

If your FICO score ranges from 580 to 619 brokers and banks will love you. How could that possibly be? Tha is generally the score where bad credit starts. Lenders will still grant you a loan, but it's on their terms and conditions. That usually means they're going to make a lot of money for giving you a high risk loan.

If You Have a Bad or Risky FICO Score

Big problems will start for you with a FICO score ranging from 500 to 580. With this low of a score, your credit rating is definitely bad. You will be able to get a loan but you're not going to like the terms and conditions that are being offered to you. You should consider taking that loan anyway, since that can be a new beginning for a fresh start to reestablishing good credit.

If your FICO score is below 499, you are in serious credit trouble and need help fast. If you can get a loan, the terms and conditions will be so brutal, that unless you're desperate, you probably wouldn't take it. At this point the best thing you can do about this situation is to find out ways you can start to repair your bad credit.