A fair credit score is considered "good" credit by many lenders. Here are some reasons why you might want to consider a credit score that is between 695 and 749. If you are looking to buy a house, get a car loan, or apply for a mortgage, a fair credit score is better than good. This article will discuss why. Find out how you can improve your score. Read on to learn more about the benefits of a fair credit score.
Fair credit score is considered good by lenders
Lenders consider your credit score fair if it is between 500 and 669. While your credit score might not be in "excellent" territory, it is still much better than subprime scores, which are in the 400s. Although the average U.S. credit score is 716, you'll find lenders approving you for a loan if your score is within that range. A high credit score will result in a higher interest rate.
Better than bad credit
Fair credit scores are between 580-669 on the FICO scale. Although below the average, a fair credit score is still better than bad. Most Americans have a fairly high credit score, and they will eventually be able to get a better one. The average FICO credit score for the United States will be 716 in 2021. However, fair credit does NOT necessarily mean you have bad credit. It is an essential step towards establishing good credit.
It could help you obtain a mortgage
You are wrong if you believe you cannot get a mortgage due to your credit score. While you may not be considered among the credit elite you still have the chance to get a mortgage. You may have missed payments or late payments, but that doesn't mean your application is worthless. Smart lenders are searching for people with high credit scores. Even though the term "fair credit", is vague, there's a lot you can do to help you qualify for a loan.
It may help you to get a loan for a car
When shopping for a vehicle loan, it is essential to know your FICO score. The majority of lenders base their decision on this number. Fair credit scores are above 700. Even if you are in the lower end of the spectrum, getting approved may be difficult. The higher your score is, the better. Here are some tips to help improve your score and find the best auto loan for you.
It can help with student loans
There are things you could do to improve your credit score if a student loan is something you are considering. Private lenders often use soft credit inquiries to preapprove loan applicants. These inquiries don't impact your credit score. However, they can reduce your chances to be approved for a mortgage loan. Here are some tips that will help you improve your credit score so you can get the loan you need.