What Is A Good Credit Score Range and What the Heck Is FICO?

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 truc tiep bong đá. 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 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.

Living within your means can definitely help raise your credit score. There’s a common misconception that people have that if they only had more money all of their credit troubles would vanish. That could not be further away from the truth. It turns out that people with more money have the same if not more trouble with debt and credit.

The bottom-line is that your credit has nothing to do with how much or little money you make, but with how you manage your money. Whether you’re earning minimum wage and paying all of your bills on time or if you’re a millionaire paying those same bills on time you will have excellent credit.

With that said you could be earning half $1 million every year and still be in terrible debt, or have horrible credit. Rule of thumb for ensuring you have the possibility for great credit is to live within your means. What that means is spend less than you earn, it is really that simple. That might mean for those with a smaller income living with roommates, carpooling, and maybe going out less. If you’re currently at a medium level income it might mean saving more and spending less on entertainment.

Another bit of information that you might not realize is your current income is in no way directly related to your credit score. Previous employers may be listed on your report but that has nothing to do with your actual score. Although creditors and lenders sometimes as to make a prospect’s income using this information and the size of your loans it is not a very reliable source to make a deduction from.

When it comes to your credit rating it’s not how much you have but what you do with it. That is why things like living within your means and budgeting are so important. That is why they say that money only enhances what is already there. If you have bad spending habits when you barely have any money what do you think will happen if 1 million dollars drop in your lap. You would probably be out of this world and debt simply because he did not have a system in place to allocate your spending responsibly.

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