How Do I Know What Credit to Expect Based on My Score?

There are general guidelines for gauging your creditworthiness based on your Fair Issac Corporation (FICO) score. But it isn't an exact science. Someone with a 720 credit score but a very limited credit history (say, less than a year) might be turned down for a signature loan, while someone else with a 620 score and a long credit history might be approved. Your credit score is just one factor that creditors consider when evaluating you for a loan. Salary, employment and stability also play important roles.

Instructions

1

Get a copy of your credit report and score. Free copies of your report are available from the website Annual Credit Report, the only website authorized to provide free reports under the terms of the Fair Credit Reporting Act. View and print your report from the home page. Then follow instructions on the report for ordering your credit score separately.

2

Review your credit score and compare it to the range of scores generally recognized for good and bad credit. According to the website Bankrate.com, credit scores range from 300 to 850, with a score of 620 generally recognized as the cut-off for good credit. Generally, a score of 750 or higher places you in the best position for loan approval at the most attractive interest rates. However, credit approval is possible at almost any score. Generally, the lower the score, the higher the interest rate. For example, someone with a credit score of 500 might qualify for a credit card at a whopping 21 percent interest rate, while someone with a 720 score might be approved for a card at 12 percent.

3

Improve your credit score, if necessary, by paying all your bills on time. Make payments to bring any delinquent accounts current and also contact creditors or debt collectors to resolve any outstanding old debts. Address any other negative issues on your credit report as well, including judgments or liens.