A credit score of 700 or more is generally considered favorable for a score ranging from 300 to 850. A score of 800 or higher on the same scale is considered outstanding.
The majority of people have credit scores ranging from 600 to 750. In the year 2020.
Creditors may be more optimistic that you will return your future bills on time if you have a higher credit score. However, when reviewing consumers for loans and credit cards, creditors may define their own standards for what they regard to be good or negative credit ratings.
This is partly determined by the types of borrowers they wish to attract. Creditors may also consider how recent events may affect consumers’ credit scores and change their criteria accordingly.
Although some lenders construct their own bespoke credit scoring programs, the two most widely utilized credit scoring models are those produced by FICO® and VantageScore®.
How To Check Your Credit Score
Keeping tabs on your credit score is key to maintaining a good credit score that is favorable to you. In Nigeria, you will need to get in touch with a credit bureau like Firstcentral Credit Bureau, where you get to fill out the credit score checker form, and your credit score will be displayed instantly.
Things You Should Note
- A credit score is important in determining whether or not a lender will grant credit.
- Many banks and financial organizations use the FICO rating system.
- Repayment history, loan kinds, credit history duration, and an individual’s total debt are all factors in credit score.
- Credit usage, or the percentage of available credit that is currently being used, is one metric used in generating a credit score.
- Closing a credit account that isn’t being utilized isn’t always a good idea because it can affect a person’s credit score.