What Do Your Credit Scores Mean?

To interpret all credit score and how it affects your borrowing power, you need to understand how your score falls along with the score range between the highest and lowest numbers. Basically, credit scores have the same goals, helping lenders understand how risky it may be to do business with you. A high credit score indicates a relatively low default and relatively low risk for creditors. On the other hand, lower scores in the Business Information Report indicate high risks for the creditors.

Here is how the lender view various Credit Reports score,

Exceptional: 800 to 850

Credit scores between 800 to 850 are considered exceptional. People with this range score experience easy approval processes when applying for any new credit, and they can offer the best available lending terms such as low-interest rates along with the fees.

Very good: 740 to 799

Credit scores between 740 to 799 range are deemed very good. People with this range score can qualify for better interest rates from lenders.

Good: 670 to 739

Credit scores between 670 to 739 range are rated good. People with this range score are “acceptable” borrowers. All the people with this range can qualify for a broad array of loans as well as credit cards.

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