A Good FICO Credit Score: What It Means To You?Lenders calculate your credit score to see how much of a credit risk you are. A good FICO credit score sits in the range from 660 to 850. By having this credit score it helps lenders know how you managed your credit over a certain period of time. Therefore by having a good score you are showing a potential lender that you are in fact more credit worthy than someone with a poor rating. In other words, you pay your bills on time and you never miss a payment, for example. A major benefit you get from having a good FICO credit score it that you will be able to get a loan or line of credit much easier and faster than others. The Internet and other global technologies make it possible to deliver online credit scores at the push of a button. The lender has almost instantaneous access to your credit rating. This helps to speed up the decision making process on loan approvals. But it also means you or your lender can respond to changes affecting your application within one day, rather than having to wait for one to two weeks. By having a good credit, your bank or other lender can make a much fairer decision based on your personal and financial history. The lender can also quickly decide if you are more of risk that they would like, or if you are reliable and will repay your loan. Also a person with a high credit score is more likely to have access to more credit than a person with bad credit. That is because the ratings provided contain precise information which many financial institutions use to approve lines of credit and loans. Plus, as well as showing how a person is doing with their finances, they can also predict a person's ability to manage their finances in the future. But as well as a good FICO credit score helps an individual to get more credit and loans, it is also decreases the credit costs that a borrower will incur. Because finance institutions incur lower costs and a much faster credit approval process, they are now able to pass on these benefits to their customers. This serves to lower the credit costs for the banks and other credit granting firms, while it creates customer satisfaction and retention. However, many people would disagree that financial institutions do share the savings with their customers. It is possible for anyone to have a good FICO credit score even if they have had a poor credit in the past. So it is easy for you to turn around a bad credit score into a good one. All you need to do is manage your lines of credit better and keep them at a minimum. Fico Score >> Privacy Policy >> Disclaimer >> Terms Of Use >> About Us >> Contact Us |