Average Credit Scores Needed To…

 Flickr |

What are some average credit scores needed for loans and lines of credit?

Your credit score affects not only your ability to obtain a loan or line of credit, but also the terms which will apply.

In general, any FICO credit score above 700 is considered to be a good score, but better interest rates are usually given on loans with higher scores.

 Flickr |

Buying a House

Excellent credit is considered to be a FICO score of 720 and above. Good credit ranges from 660 to 719, while fair credit is around 620 to 659. Poor or bad credit is usually considered to be 619 and below.

If you’re buying a house, a score of 720 and above will put you into the “prime” mortgage loan rates. Many “subprime” mortgages have been problematic in recent years and not all lenders will write subprime mortgages.

 Flickr |

Automobile Loans

People with a variety of credit scores will be able to obtain a car loan, but the difference will be in the interest rates and the down payment amount.

A credit score of 660 to 700 or higher is required to obtain preferred car loan rates with low interest. Scores between 620 to 659 are the normal for standard car loan rates with slightly higher interest rates. People with scores in the 580 to 619 range may qualify for special auto loan rates with high interest, a substantial down payment, and steady income.

Credit problems shouldn't be a factor in renting a car, however, as most rental agencies don’t have a credit score requirement, simply a minimum amount of available credit on a credit card to cover your rental.

 Flickr |

Renting an Apartment

Not all landlords perform a credit check, especially mom and pop owners of individual units. However, most larger rental agencies do require a credit check, and the terms vary widely. In general, a score over 620 is enough to land a rental unit in an apartment complex, but luxury apartments or buildings may require higher FICO scores.