When you borrow money the lender will check your credit history before giving you a loan.
If you have not defaulted on your repayments you can get a loan at low rate of interest.
Generally a credit score range of 800 to 850 is considered to be a good.
However, less than 15 per cent Americans fall in this range.
Having a range of over 800 gives you an opportunity to negotiate the interest rate with the lender.
People who fall in the range of 600 to 799 is considered to as a decent financial standing.
Nearly 40 per cent of Americans fall in this range.
People who fall in this range have to go through history checks before a loan or insurance is given to them.
Also, the rate of interest on loans paid by people in this range is higher when compared to people who have a range of 800 to 850.
People who fall in the 500 to 599 credit score range are considered to have below average credit standing.
Most lenders avoid giving loans to such people as they have a bad credit history.
Also, insurance companies charge high premium to people who in this range.
To improve their credit standing, people in this range must avoid defaulting on their repayments.
Those who fall in below 500 credit score range should start taking serious steps to improve their credit standing.
These people have to get professional help to improve their credit standing.
People who fall in this range must pay their bills on time and avoid overspending.
There are many insurance companies and lender that analyze your credit range before deal with you.
It is in your interest that you check your credit report periodically to find out your credit standing.
If you find errors in your credit report, make sure you report the errors to all credit bureaus.