A credit score acts as an absolute reflection of your creditworthiness. This numerical expression is calculated with a help of a mathematical algorithm using your credit history. Every financial company, bureau or lender requires this specific three-digit number to approve or refuse your credit request. Furthermore, this three-digit number influences the interest you will, probably, have to pay.
90% of the financial bureaus use FICO software and score to deal with credit scores. Credit scores are divided into good, fair, and bad credit scores. We have already posted information about good scores. Fair credit scores are limited by specific numbers from 660 to 720 according to FICO scoring system.
So, any number from 660 to 720 is considered to be fair and shows lenders that you are an average borrower, whose credit history doesn’t stand out with a commitment but also doesn’t contain unforgivable mistakes and debts.
As it has been already mentioned, a credit score isn’t a decisive factor in the credit approval. It’s just an option, which can help you in getting a credit. Having a fair credit score is alright but, at least, try to improve it to have more chances. Our resource provides information about how to improve your credit score.
Related: Customers with good credit prefer unsecured loans. Find out why.