In the economic climate we live in today, there are few things more important than your credit rating – at least if you’re the type of person who very much wants to live “on the grid”; so to speak. If you enjoy the outdoors, homesteading, prefer bartering and trading instead of using currency to buy, living off the land and all that, then having a good credit score range is probably not a priority. Otherwise, you appreciate the financial reality of needing credit to buy anything that costs more than you can pay with the cash you carry in your wallet on payday; and having a good credit score range is necessary to get the best rates on car loans, home loans, etc.
The main outfit that oversees your credit rating is the Fair Isaac Corporation; more popularly known as FICO. The credit score system over which they sit runs from 300-850, where less is most certainly not more; meaning that if you have anything even approaching a FICO score of 300, your credit score is so bad you might need Benjamin Franklin as a co-signer for any reputable loans whatsoever. If you have Vegasgoal a score of 850, then you probably ARE the guy who’s on the $100 bill – Benjamin Franklin. On a more serious note, and for a better understanding of what a good credit score range is considered to be, check out FICO’s own model:
Any credit score rating from about 700-850 is considered good; whereas below 700, you can be pretty sure that you aren’t getting the best rates on any loans for which you are approved. You see; credit rating tells the person/corporation from whom you are borrowing money how trustworthy you are when it comes to making regular payments on time and in full. And because the best predictor of future behavior is past behavior – or, so says the FBI – this is a well-regarded assumption respected by most institutions. Past bankruptcies, loan defaults, short sales, delinquent payments; all of this is recorded in your filed credit report, and they all conspire to make up your credit rating. This is why, despite the bad rap that credit cards with exorbitant annual percentage rates can sometimes get, they will always be viable for some people, because they represent a great way to get your FICO score back within a good credit score range.
If you have managed to maintain a score of higher than about 750, then you’ll be available to receive the lowest rates on any type of loan (for the most part). Your financial history is in such a good credit score range that your credit report might as well have the word “dependable” stamped across the front page. It is important to note that while FICO, itself, generally considers 600 and higher to be a good credit score range, some of the more elite credit cards with excellent rates actually prefer a score higher than 700-750.
Lastly; don’t ever think that credit history and score is unimportant; when the nation is in an economic downturn, your credit score matters even more than the amount of cash you have on hand. Being late on substantial things like a mortgage or car loan can significantly drop your score, making it hard to get back within a good credit score range. The overall value of any rating will take on different meaning dependent on the state of the country’s finances, and you need to be sure you aren’t caught with too low a score during this period.