Credit scores range from 300 to 850 and are one of the ways lenders evaluate whether or not to grant credit to a potential borrower. Your credit score will also have an impact on how much interest your lender requires you to pay on the amount you borrow.
Lenders may judge credit scores by different criteria. Thus, what is "outstanding" to one lender may simply be acceptable to another. According to Bankrate.com, however, outstanding credit is typically a score of 760 or higher.
The information in your credit report determines your credit score. A long credit history that reflects a low balance of debt and a history of on-time payments will contribute to an outstanding credit score.
Individuals with outstanding credit are more likely to enjoy low interest rates on loans and credit cards. Low interest rates can save you money over time.
When you pull a free consumer credit report, your score may be different from the FICO score that your lender pulls. Having a high consumer credit score is no guarantee that your FICO score will be as high.
An error on your credit report could destroy your outstanding credit score. It is imperative that you regularly monitor your credit and dispute any errors that you find to maintain your good credit rating.
- Photo Credit Image by Flickr.com, courtesy of borman818
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