One of the most common questions we get at SecuredCreditCardRx.com is what can I get with my current credit score? You may be interested in purchasing a vehicle, taking out a mortgage on a home or acquiring a business loan. Is your credit score good enough to be eligible for any of these scenarios? The answer is more complicated than a simple yes you can or no you can’t and is dependent on your long term history as well as your credit score. We’re going to break these numbers down and assume you have a fairly long credit history on your report. As you probably know your credit score can range from 300 at the low end all the way up to 850 for a perfect score. Many variables go into your credit score including how long you’ve had your credit lines, if your payments are on time and how many active accounts you have open, just to name a few. The following outline is a general guideline you can use to determine what you may be eligible for.
780 Credit Score and Higher
When you get into the high 700’s (780 or higher) you’re going to be a prime customer for any lender. This means you’ll get the lowest interest rates available and loan officers will be vying to get you to use their bank for your loan. You’re considered to have an “A” credit rating. There really isn’t any point in attempting to get a higher than 780 unless you consider your number a bragging right among your friends.
720 – 779 Credit Score
A 720-779 credit score is considered to be excellent. Most lenders will drop a few points on your mortgage loan which can save you thousands of dollars on a 30 year mortgage. You’ll be able to qualify for most car loans or business loans along with in-store credit cards.
700 – 719 Credit Score
If you’re in the 700-710 credit score range then you’ll most likely be eligible for any loan you apply for. You will, however, be paying a bit higher interest rate than those with a 720+ credit score. This can mean you’ll be approved for at 4.9% interest rate rather than a 4.2%. We recommend spending a little more time on your credit to get your score above a 720. In the end it will be worth it to get the 4.2% interest rate as it will save you thousands at the end of your 30 year mortgage. In this range you are likely to approved for in-store credit cards or home improvement loans.
650 – 699 Credit Score
This is considered a “good” credit score. You may be approved for a loan that you apply for but you’ll be paying higher interest rates. You may find it more difficult to apply for large loans such as a mortgage loan or refinance. In most cases this score is still good enough to get an in-store credit card or a gas card so you can make payments and improve your credit score.
600 – 649 Credit Score
With a 600-649 credit score you’re still not in the “poor” category but you’ll end up paying high interest rates on any loan you apply for at a bank. Many lenders will not allow you to apply for a mortgage at this rate without a co-signer or putting at least 20% down on your home. If you’re at this score because of a lack of credit history then we recommend you apply for an in-store credit card and make timely payments in full for a period of 6 months.
500 – 599 Credit Score
With a 500-599 credit score your best bet is to put in a secured credit card application and get a secured card to help you build your credit. After 6 months of positive use including paying your balance off as soon as its posted, keeping your balance below 30% of your max and keeping a close eye on usage, you can usually get yourself out the danger zone of a sub 500 credit score.
Sub 500 Credit Score
If you’re credit score is below a 500 then there are some serious problems with your credit. You’ll most likely be denied for home loans, vehicle loans and even in-store credit cards. You can apply for a secured loan at your local bank which will allow you got get out of the danger zone of a sub 500 credit score. Once you show good payment on your secured loan you can apply for a secured credit card to boost your score even more.
Begin Increasing your Credit Score Today
With a little work and a few handy tools from banks, you can raise your credit score to become a prime borrower for even the most picky banks. Time and patience is the most important factor in repairing poor credit so get started today.
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