If you are looking to find out what your credit score means, then you have several things to consider. While we all know that a higher fico rating will get you better rates on loans and immediate approval on virtually anything that requires a history check. Let’s look at what the different credit scores mean in terms of finding out what a good FICO rating is. Here is what the numbers will ultimately dictate to you.
540 and Less: Things are not good in your history. If you have this credit score, it means you will end up paying a lot of interest on your loans, if you are even able to qualify for them. Expect to need a cosigner for most loans. You are a high risk borrower.
600: This is still very low in the world of FICO ratings. Loans can be found, but you will need to explore multiple options, including those that cater to people with a bad history. Don’t expect good rates with this score. Unfortunately, with a 600 credit rating, what it means is difficulty in borrowing money and getting loans to help out.
640: This is still not considered to be a good rating, but it’s getting much better. You will be able to get approved for most loans, other than those with low or no money down. What your credit score means in this case is some financial freedom to borrow from regular banks without a cosigner.
700: You will be able to get a loan without too much trouble. You may not always qualify for loans that have very rigid rating history requirements, like zero percent financing options, but you will generally not have many worries. This is a good credit score that means approval for most loans.
750: No worries. This credit score means you will get approved for virtually every loan option you apply for. You have done a good job of managing your money and your FICO rating reflects it. Banks will have no issues approving you in the majority of cases. You can apply with much confidence in all situations that you need to borrow in.
800: You’re the man. This credit score will mean that you are truly a master at managing your finances. If you are not approved for any loan, you should check your FICO rating for inaccuracies, since there would be no reason not to be approved.