Your credit score acts as a tool for lenders to know how risky it might be to lend money to you. To understand what your credit score means you need to know which credit score range it falls into.
All credit scores are split into a series of ranges which act as a rough indication of how well you are viewed by finance lenders. Essentially, the higher your credit score is, the more trustworthy you are in the eyes of the lender. This means that you’re likely to be accepted for loans and receive better interest rates. Credit scores run from 0 to 999 and are split into several ranges in between.
Here’s a full breakdown of the Experian credit score range and what it means*:
- Excellent (961-999) – Will be accepted for loans and receive the best interest rates.
- Good (881-960) – Almost certain to be accepted for loans and receive good interest rates.
- Fair (721-880) – More than likely to be accepted for loans and receive fair interest rates.
- Poor (561-720) – Could be accepted for loans and receive higher interest rates.
- Very Poor (0-560) – Less likely to be accepted for loans and likely to receive high interest rates.
Understanding your credit score without knowing which range it falls into is like trying to understand a word without its context – the meaning of one relies on the other. What is also important is where your credit score sits in this range. For example, a credit score of 881 sits in the ‘good’ range on most credit score ratings which would indicate that you have a good chance of being accepted for loans and receiving competitive interest rates. However, 881 is on the cusp between the ‘good’ and ‘fair’ range. So, whilst you have a ‘good’ credit score, you’re not as financially secure enough to receive the rates that someone in the middle of that range.
At My Car Credit, we are happy to talk to you whatever your credit score and we’ll try our best to get you the right car finance deal for your circumstances. Use our car finance calculator to figure out where you stand.
For more information around improving your credit score, check out our blogs.
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