How much credit card interest can I save?
The Fair Isaac Corporation Credit Score, or FICO Score, is the most widely used credit scoring model in the United States. When considering a potential borrower, the lender will analyze the borrower's credit score, along with other factors, such as income and assets. FICO scores range between 300 and 850, with the average U.S. credit score being 723.
According to Fair Isaac, a credit score above 700 places you in the low credit risk category (perfect or "A" credit... frequently called "Prime"), meaning you should qualify for the best interest rates, depending on other factors such as income. A score between 690 and 600 is considered a moderate credit score, and many people say you are "Alt-A" if you are between about 650-680. This means that while you will not receive the best interest rates, you should still be able to borrow at reasonable rates.
A score below 600 generally means that you will be considered a relatively high credit risk, and your interest rates will probably be quite a bit higher than a consumer with a better credit score. A score below 550 is generally considered poor credit; a score this low will likely carry high interest rates and fees.
There are several other scoring models, such as the Vantage Score and the Beacon score, which credit card companies use when making decisions, so the ranges I mention above are not absolute. However, Fair Isaac is the most common scoring model, so the information I provided should serve a good guide. For more information about credit reports, credit scoring, and ideas on how to improve your credit score, I encourage you to visit the Bills.com Credit Resources page.
I encourage you to visit the Credit Cards and Credit Resources page on our website. There you will find many helpful tips in case you are shopping for credit cards.
I hope this information helps you Find. Learn. Save.