Though every one has heard about the credit score scale, not many know their own FICO score. Many have no idea if their own score is rated good or bad. Understanding the workings of a credit score scale is important for a person who engages in regular credit transactions like loans, credit cards and mortgages. Read further to see how certain elements are important to broaden your perception of the subject and increase your FICO scale rating.
A numerical scale of 300 to 850 is considered to be the range of the credit score scale. If you have not made any credit transactions in your life then your FICO score will remain at 300. Alternatively if you execute your transactions within time limits and have very good live score financial history, your score will stand at a perfect 850. Usually a persons FICO rating will be indicated at a point between these two high and low points depending on the person’s financial past. If you happen to receive a score below 850 but have performed without default in all your credit settlements don’t start worrying because on average, a credit score scale indication above 690 is considered as a good score.
Lenders perceive the impracticalities involved in attaining a perfect 850 due to prevailing economic and financial trends in the global context. If a person records a score of 720 and higher in the credit score scale such persons are eligible to receive better financial fringes in terms of credit i.e. lower interest rates, premiums and minimum down payments on their credit facilities. A bracket between 680 to 720 a little down in the credit score range still indicate good credibility status and will ensure you receive decent credit facilities.
Any score recorded further down the credit score scale is considered as warning signals. If the score oscillates between 630 to 680, a credit facility may be granted yet, the pertaining terms will not be as rosier has the score been higher. Then the lenders will charge you higher interest rates, comparatively bigger down payments and premiums for your lending facilities. Now if you have seriously defaulted in your credit obligations in the past, your FICO rating will be poor and a score that falls below 630 will act as warning for your lenders making it extremely difficult to procure any credit facility.