A Credit Score Below 720 Costs You
The value of your credit score has been compromised because of challenges caused by the state of our economy. People who figured they had good credit are finding their credit worthiness depreciated. Good credit is now defined by a score of 720 or higher. In recent years, a credit score of 650+ would allow a borrower the same terms that now are only awarded to people with a score in the 700s.
Today having a credit score in the 600’s influences high interest rates or loan rejection. Prior to 2006 consumers were approved for reasonable rates on their auto loans and mortgages. Now, these same scores are treated as a negative. Consumers whose credit score is 750 or higher will get approved for great rates and benefit from many lending opportunities.
Consumers who have a decent credit history and proof of income but maybe didn’t establish enough credit are still penalized if there score is below 700. The banks claim that they are not willing to take risks on applicants with a lower score then 720.
You have no choice, you must raise your score if you want the best deals. If you are willing to pay hundreds of thousands of dollars more in interest, if are willing to miss out on 0% refinancing or put up with pre-paid credit cards then live with the credit score you have. But keep in mind, you do actually have to live with your credit score and there are options to boost your score.
The chance for better credit is right now. The right customer care, the right information and an ethical approach to credit repair is just a peak into what ICC can do for your wallet. Make your credit count and experience the difference a useful credit score makes.
- Understanding Credit:
