What’s in a number? Plenty.
Your FICO® (credit) score is one of the most important numbers you’ll ever have. A low score can keep you from getting approved for a loan or from being able to rent an apartment, and will probably cost you more in insurance premiums and can even prevent you from being considered for a job.
You’ve seen the phrasing “as low as” in front of loan rates, right? When creditors look at your score they are generally basing your “creditworthiness” (ability to pay them back) on your level of risk. The higher your credit score, the lower your risk. The lower your risk, the better your chances are of being approved for loans and receiving the best “as low as” loan rates.
- Here is a general guideline for how creditors rate you based on your credit score:
- 760 and above = Excellent
- 700-759 = Great
- 660-699 = Good
- 620-659 = Average
- 580-619 = Poor
- 579 and below = Very Poor
The good folks at FICO® have put together a handy guide called Understanding Your FICO®Score that thoroughly explains what your credit score means and how it impacts almost every facet of your life. We highly recommend that all of our members take some time to read this because of the excellent information it contains.
If you’ve experienced some setbacks that have damaged your credit score (even by things that were not your fault), or if you’re interested in improving your score, call us or drop by the branch. We know lots of proven ways to help you build from here.
Not a member yet? We’ll take care of that for you as you’re opening your account or taking out a loan. If you want to get a jump-start, enroll online or just give us a call at 978.328.5100. We’ll be happy to help you build from here.