Good credit
You will have better chances of getting approved for loans if your credit score is 680. This score is determined by your borrowing history. Your credit score can be improved by paying your bills in full and punctually. Avoid maxing out your credit cards and keeping balances below 30% of your credit limit. You should also avoid opening too many credit cards at once and keep old ones open.
Bad credit can result from poor money management or unexpected costs. Bad credit can be caused by job loss, unpaid car payments, or medical expenses. If your credit score falls between 620 and 679, you may be able to get an OK loan, but it will probably carry a high interest rate.
Fair credit
A credit score below 680 can make it difficult to be approved for a loan. However, there are ways to raise your score and have a better financial future. Knowing how to raise credit scores is the first step in building credit. The long-term benefits of this process are well worth the effort.
With a fair credit score of 680, you can be approved for many types credit cards and loans. As your score increases, your chances of approval are better and you will be approved for better terms and interest rates. This score is still below the "Good", but falls within the fair area. In fact, over 35% of consumers have a credit score that is below 680.
Regular payments can help improve your credit score. Many issuers automatically check your credit limit after you make regular, on-time payments. Even if you have a fair credit score, you may find it difficult to get approved for a credit card with a rewards program. Although you can find some cards that earn cash back, most rewards programs require excellent or better credit.
Whether or not you qualify for a loan depends on your financial situation and the type of loan you need. Even if the credit score you have is fair, it may mean that you will be subjected to higher interest and fees than others with better credit. You can appeal to the bank to find out why you have been denied a loan. You can also take steps for your rights to be protected.