The days are gone that you could get credit by simply being a warm body. Will these times return? Probably not, but they definitely will not return while our economy is in such bad condition. Today's lenders are very selective as to who gets credit. As an example, an excellent credit score used to be 720 or better. That score is now 760 or better, because money is tight. Good credit would then follow at around 700 to 760.
Another method of trying to determine how your score stacks up is to check out the division of scores among consumers. About 20 percent of consumers fall in the range of 780 to 850. The next 20 percent is about 740 to 780 followed by another 20 percent at 690 to 740. Then there is the next 20 percent at 620 to 690, with the lowest 20 percent below 620.
"No credit" is usually considered bad credit, too. Consumers new to the credit world usually have no credit and find themselves in the same situation as a person with bad credit. The simplest and fastest solution for either case is a secured credit card available at most major banks within your community. There is usually a requirement to have a savings account of $250 or more to get a secured credit card.
- Are Discover Card credit cards any good?
- Is a credit score of 725 considered good?
- Which bank offers the best debit card?
- Supposing you have a perfect credit score of 800 or better; which credit card offers the highest credit limits?
- On a credit card application, can you include your spouse's income under household income? What about other people that live with you?