SHOPSMART AUTOS – CUSTOMER INFORMATION – AUGUST 30, 2020
SHOPSMART AUTOS – CUSTOMER INFORMATION – AUGUST 30, 2020 What is a good credit score? (Pt. 1) A good credit score is typically anything above 670. Your credit score is a three-digit number that tells a lender how risky a borrower you are. A credit score can determine whether you get approved for a mortgage, auto loan, or new credit card. It also influences the terms of a loan, including the interest rate. A credit score can be negatively influenced by late or missed credit-card, cellphone, utility, or loan payments. Credit scores are like the GPAs of adulthood. Just as colleges use GPAs to evaluate students during the admissions process, banks and other lenders evaluate us by our credit scores when we apply for a new credit card, mortgage, or auto loan. Three major credit bureaus — Equifax, Experian, and TransUnion — closely track a person’s financial history to develop an individual credit report and calculate a three-digit credit score, which tells lenders how risky a borrower that person is. The lower the score, the greater the risk. Anyone who has ever opened a credit card has a credit score. The bureaus are given information about our credit-card histories from creditors, but they don’t all have the same information, which can lead to slight variation in the credit score calculated by each bureau. Credit scores fall into five categories. The three major credit bureaus created the VantageScore model, which breaks down like this:Very poor: 300-549 Poor: 550-649 Fair: 650-699 Good: 700-749 Excellent: 750-850 There’s also the FICO model, which was created by the Fair Isaac Corp. and outlines a different set of ranges:
Poor: 300-579 Fair: 580-669 Good: 670-739 Very good: 740-799 Excellent: 800-850 In determining your risk as a borrower, lenders may match your credit score against either model, but industry-specific models also exist, according to Experian. Where you rank largely determines whether you get approved for a mortgage, auto loan, or new credit card. It also influences the terms of a loan, including the interest rate.
Make It A Champion Day! So…what do consumers want in a car buying experience? I have my opinions, but I want yours.
You took the time to read this, so think like a consumer (if you can) and let the community know your thoughts. With encouragement and hope.
Tags: 2019 Subaru Forester Touring, 2020 BMW iX3, 2020 Chevrolet Suburban, 2020 dodge charger, 2020 EQC, 2020 Ford Super Duty, 2020 Honda Pilot, 2020 Mazda 3, 2020 Mercedes-Benz EQC
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