Lenders are using credit scores more and more to make decisions about who they will lend to. The main developer of these scores is called Fair, Isaac Co (FICO), thus these scores are often called FICO scores. Scores range from 300-850 with a lower score indicating a higher chance of defaulting on a loan and a higher score representing a better chance that the lender will get paid back. The national average score is approximately 680.

Every lender sets up its own score cutoffs but generally speaking, you can expect to receive the following treatments based on your score:

300-549: Extremely difficult to find any lender that will offer you credit.

550-619: You may be able to find credit, but very high interest rates and fees will likely apply.

620-679: You should be able to obtain credit, but you will probably be offered a higher interest rate.

680-749: You should have no problem getting credit and you will receive good interest rates and repayment terms.

750-850: Lenders are happy to offer you credit and provide you with their best rates and terms.

These scores are becoming even more important to us as consumers over time. For example, most insurance companies also check your score when you apply for car or home insurance. If your score is too low they might not even offer you insurance or they may offer it to you with higher premiums.

Many companies will also check your credit when you apply for a job. They look at how well you handle your personal finances as an indicator of how well you will take care of your professional responsibilities.

With so much at stake with your credit score it makes sense to know what your score is. TrimYourDebt.com has negotiated with the credit bureaus to offer consumers a free look at their credit report and credit score. It is a 30-day free trial offer, so you get the information right up-front and you can cancel free of charge within 30-days. To check your credit score for free, visit http://www.TrimYourDebt.com/GetYourCreditScore.aspx?src=art to find out now.


About the Author
Don Blackhurst has been working in the banking and finance industries for over 15 years and has an MBA with an emphasis in Finance. He is the co-founder of TrimYourDebt.com ( http://www.TrimYourDebt.com ), which provides free budgeting tools, debt planning, and credit help.