Having a credit score of 620 is generally the minimum you will need to be considered for most financing. You can theoretically get credit with a low score, even a 300 (the lowest credit rating possible), but you will have to pay much higher interest rates. Keep in mind that while your ability to pay is a consideration when you apply for credit, you may be approved and still be in over your head.

 

One of the biggest advantages when you have a good credit report is the option to have lower interest rates and better financing terms when you are approved for a loan or financing plans on expensive items.

 

Try to only apply for new credit when you already have your credit in good order so you can take advantage of all creditors have to offer those with healthy financial habits.