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A fair credit score is any FICO Score that falls within the range of 580 to 669. While FICO is the most popular scoring model, the fair range can vary when looking at other models like VantageScore, which considers 601 to 660 fair.
Knowing your credit score is the first step toward repairing and improving your credit. Scores range from very poor to exceptional, so what’s a fair credit score? A fair score is the second-lowest range, just above very poor using the FICO® scoring model, and according to Experian®, approximately 17 percent of people fall within this range.
With a fair credit score, you’ll be subject to subprime loans, which means that you’ll have to pay high interest rates. For those trying to save money, this isn’t ideal, so what can you do? Here, we’ll break down what this score means, the other negative effects in addition to high interest rates and what you can do to reach the best credit score possible.
A fair credit score is slightly different depending on which credit scores you’re looking at. Different lenders and companies may use different scoring models. While FICO is the scoring model used the most, some may check your VantageScore®. Here’s the difference:
The entirety of the FICO credit scale starts at 300 and goes up to a maximum of 850. Within the scale, there are different credit score ranges. Ideally, you’ll get to the very good or even the exceptional range. If you have a low credit score, don’t worry. You can fix your credit, but it starts with understanding what these different ranges mean.
VantageScore ranges:
Although the VantageScore ranges are different, the ranges are similar to FICO when trying to understand how lenders view your score. You may notice some differences between FICO and VantageScore. One of the main differences is that FICO has a “good” and “very good” range, but VantageScore has a “poor” and “very poor” range instead. It’s also important to note that a fair credit score range with VantageScore starts at 601 and starts lower at 580 for FICO.
While you can still get credit cards and loans with a fair credit score, there are some benefits to having a good credit score. As you’ve learned, a good FICO score is between 670 and 739.
Let’s discuss some of the benefits of a good credit score, so you know what you’re working toward.
Something many people are unaware of is the fact that some auto insurance companies use your credit score as a factor for your rate. Unless you live in select states like California, Washington or a few others where this isn’t permitted, a fair credit score may be adding to the price of your insurance premium.
If you have a fair credit score, you can still get lines of credit. This means that you can get credit cards, auto loans and personal loans. And did you know you can even purchase house with a fair credit score?
Although a fair credit score provides you with access to various types of credit and loans, it’s helpful to remember the benefits of getting into the good range. Continuing to work on your credit score is going to save you money and improve your financial well-being. For example, fixing your credit before buying house is going to lower your down payment and get you a much better interest rate.
Moving from a fair credit score to a good credit score and beyond can take some time, depending on your personal credit situation. Regardless of what’s going on with your credit, there are some steps you can take today to improve your score.
Now you know what a fair credit score is and why it’s beneficial to work toward getting within the good range. If you finish reading this and jump into fixing your credit, you may see an error on your report. Errors on your report can decrease your score drastically, and sometimes, the best thing you can do is get professional help.
CreditRepair.com has credit professionals who can help you through the dispute process if you have errors on your report. If you’re not sure where to start with fixing your credit or just need some additional financial help, we can assist you with these as well. We provide a variety of services like helping you dispute errors as well as credit monitoring and credit education services. Sign up today and learn more about our proven process for helping people repair their credit.
Note: The information provided on CreditRepair.com does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only.
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