A good Debt Consolidation Loan depends on your Credit Score

In the event that you ever apply for a loan or a credit card, you will be most likely aware of what the credit score is. Credit rankings will tell the lenders how much trustworthy you are as a borrower. It is the most crucial factor of any significance that can decide how a lending decision will go in the United States of America. The range in which you fit inside will be dependent on what the type of your credit score which is being assessed. This article will help you to understand the right credit score ranges for you to get approval for a good debt consolidation loan.

The range of credit scores

As has been mentioned already earlier, the credit score range will be dependent on the credit assessing department which you are working with. There are basically two different types of primary credit rankings as well as the scores. The first is the FICO and the second is the Vantage. FICO is the primary significant credit score in the United States of America and Vantage came about only in the summer of 2016. However, Vantage has still managed to grow up into a very popular form of a credit score, and hence you must ensure that you are recognizing and giving equal importance to both these forms of scores. Both these scores will fall within the range of 300 to 850, the range of the scores will be varying, however, depending upon the type of the score which you are looking for. Following we have outlined the various score ranges according to both score types.

FICO Score Range for Debt consolidation loan

FICO score ranges will be varying slightly compared to the score ranges of Vantage.

1.      Excellent (800-850)

This range of credit score will be indicative that you are in the top 20 percent of credit scores in the United States of America. If you have this score, then you are not likely to be experiencing any trouble to get your loan financing approved. Also, you will be quite likely to be eligible for getting the best rates that are not available in the market. When you have your score in this range, you must ensure that you can maintain it.

2.     Very Good (740-799)

When you fall into this category, you will be a part of the 18 percent of people who have such a good FICO score. This is also a score range which is quite difficult to achieve. You must have an established history of your credits without having any bad errors in your report. When you have a score like this, you will become eligible for better rates of interests and a lot of good financial options also.

3.     Good (670-739)

This score range will be the third one from the top, and it will still make you a part of the top group of credit scores in the United States of America. You shall become eligible for a lot of decent rates of interests from a lot of money lenders. Around 22 percent of people will fall into this category.

4.     Fair (580-669)

When you get a score within this range, you shall come into the bottom half of credit scorers. Around 20 percent of the country will fall into this category. You must try to make a good effort in trying to improve your credit scores even if you get stuck in this range. Debt consolidation and credit repair are some options which you can try and consider in order to jump on into a better bracket.

5.     Very Poor (300-579)

When you find yourself in this category, you shall find that you are not getting approval for most types of finances. When you find yourself a part of this 17 percent of the credit scorers in this score range, you must try and commit yourself to improving your position. You consider debt consolidation and credit repairing; just you need to make sure that you are not waiting too long to get you score right back on track.

Vantage Score Ranges

Now we will show you the score ranges of Vantage. These will vary a little from your FICO scores which have been mentioned before.

Excellent (750-850)

This is the best range for Vantage credit scores. Almost 30 percent of the United States of America will fall into this core range. You will be finding that the credit scores inside this range will give you no problems to get your loans approved along with good interest rates.

Good (700-749)

When you have a good credit score, you will become eligible for a lot of major credit cards in the financing market. You will fall into the 13 percent of this country who fall into this bracket. When you keep on showing such good score, you can get moved forward in the topmost bracket in quick time.

Fair (650-699)                

Almost 18 percent of this country will fall into this category. You will not be eligible for reward cards, but you shall still see that you will be eligible for a lot of credit cards in the financing market. You would have to ensure that you are exhibiting good scores for a few years and then your scores will improve too.

Poor (550-649)

This is a low score bracket to be in. 34% of the country is in this bracket. You will not find yourself eligible to get most credit cards, and you will also find it quite difficult to get good rates of interests on the loans you apply for. You can consider using debt consolidation to get out of this bracket.

Top Ten Reviews can help you with your consolidation loan. You can get in touch with their experts to review your scoreboard and get loans at easy terms and conditions.

Wrapping things up

Hopefully, the information mentioned in this article will have helped you to understand how you can improve your credit scores.


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