Bad Credit Scores

It is helpful to remember that credit scores indicate the likelihood of the consumer making his or her payments on time and as agreed. Recognizing the variety of possible scores, lenders also offer a variety of repayment terms and interest rates based on the risk they are willing to take with the variety of potential borrowers. For this reason, it is an over-simplification to categorize any score as good, bad and even okay.

That said, when a consumer has a score in the low 500s or below, it will be extremely difficult for him or her to qualify for any loan or line of credit. Those who have filed for bankruptcy recently will likely find their FICO score in the 485 to 515 range, depending upon where their score was before they filed and what was included in their bankruptcy petition.

That said, even consumers with scores in the 600 range can find it difficult to qualify for loans with many credit card companies, banks and credit unions.

Since a higher score can save you thousands of dollars over the lifetime of a car loan and tens or even hundreds of thousands of dollars over the lifetime of a mortgage, let’s find out how to get a hold of your score and whether you need to pay for it or not.

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