Anyone who has taken out a loan or used a credit card has established a credit rating. This consumer credit rating is commonly known as a FICO score, a numerical value that reflects how lenders view someones credit history and thus their current desirability as a borrower. A FICO score of 680 lets lenders know specific things about a borrower with that rating.
680 FICO Score
The FICO score is a credit rating system that was created by the Fair Isaac Corporation as a way to represent a borrowers past credit history. The FICO scale rates borrowers by assigning them a score ranging from 300 to 850. A FICO score of 680 puts a borrower in the Good category on the scale. According to Experian as of July 2010, this would place the borrower slightly below the average score of 693.
Positive Aspect of 680
On the FICO credit rating scale, higher numbers equate to better credit ratings. A 680 FICO score is in the middle of the Good range (660-699) on the scale. An individuals FICO score can determine the interest rate the borrower will get or if they might even be denied a loan or a credit card. A 680 FICO score means that the borrower should have little trouble being approved for loans, with the amount loaned dependent upon her income level.
Negative Aspect of 680
According to Experian, as of July 2010, a 680 FICO score is slightly below the average score of 693. 680 is also below the median FICO score of 711. The median score means that half of all people rated are below 711 and half are rated above 711. A lender may focus on 680 as being below the average and median scores, and therefore base its offered interest rate on those aspects. As a result, a 680 score could result in a higher interest rate than might be obtained by people with above-average scores.
Improving On 680
A FICO score of 680 is good, but borrowers with scores above 760 generally get the lowest interest rates. According to MyFico, a 680 score can mean a 0.4 percent to over 3 percent higher interest rate compared with someone whose score is 760, depending on the loan. This makes it important to work on improving the 680 score by paying off outstanding credit card balances and making sure all payments are made on time. This will gradually raise the 680 FICO score closer to the desired 760 range.
Obtaining Credit Report
Borrowers need to know whether their credit reports are accurate, as this is the information that determines their FICO scores. The Fair Credit Reporting Act mandates that the three major consumer credit reporting bureaus-Experian, Equifax, and TransUnion-must each provide individual consumers with a free credit report once every 12 months. Free credit reports can be obtained from the official website (link in Resources), by calling 877-322-8228, or by writing to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.
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