“In the near past I had problems with payments, was unable to make them on time for two of my four credit cards. I know that such slips seriously affect credit score, so I checked for my own on some free credit check service. They told me I have a ‘fair’ score. What is considered fair credit score range ?
Now I’ve got rid of all my debts finally and closed a few of my old accounts due to extremely high rates. I’d like to apply for some new credit cards. Are there some credit cards and loans for fair credit score. What offers do I have to choose from?” This letter was sent by Max from New York, who is one of many customers with the same questions.
Some free credit score services offer categorised scores instead of plain numeric values. Some of them provide comparison table for transferring a score from one scoring model to another. Most likely our reader has no such tables and was given only with ‘fair’ credit score. So what does this mean?
A fair credit score is what the most of US people have. This can be also called average. If to believe the majority of financial sources and consider FICO score range, a fair credit score is the one that lies between 640 and 680. It is neither bad nor excellent. It is close to a good credit score value.
Usually people with such credit score have at least one
delinquent credit account, fails with regular payments, etc. Sometimes a reason of having this type of score is high debt to limit ratio on credit accounts. Generally an average score is what considered as fair credit score range. It can be easily improved by timely regular payments and decreasing overall debt.
People who have fair credit score may have more efforts on applying for a new credit account. Creditors can ask for an additional proof of your creditworthiness, may revise your credit report or request the information about income. If you would like to qualify for big loans like mortgages, get ready for a long negotiation process, if you want to get a deal with the lowest possible interest rates. Do not expect you will get the rates that are offered to people with excellent credit score, but there are still offers to choose from.
There are lots of credit cards and loans for fair credit score. They differ from what is offered to top score customers only by the deal terms. Higher interest rates and some additional fees is a usual approach of creditors for such customers. In average you will be offered 5 – 10% bigger percentage rates on credit cards and about 2% bigger rate on mortgage or car loans, compared with top score customers.
The only way to get money on credit at better conditions is to improve your own credit score. Get ready for flawless payment history and getting rid of your credit debts.