Once Upon a Credit Score
You can’t improve your credit score until you truly understand what the different credit-score ranges signify. Turns out, the little pigs (yes, those pigs) can help you figure that out.
Join SAFE Cents host Mark, as he and those delightful bacon boys teach you a thing or two about understanding your credit score. Who knows? The big bad wolf may make an appearance, too.
- What Your Credit Score Means: a Video Summary
Today’s episode is all about your credit score, which predicts how likely you’ll pay back money that you’ve borrowed.
See, in the old days when you didn’t pay it back, the lender would send you a friendly reminder, like the one attached to that baseball bat.
But then we all got civilized, and in 1989, the credit score was born.
Your credit score can range from 300 to 850. The higher your score, the easier it may be to borrow money. But what does that really mean?
Let’s use the story of the three little pigs to help you understand it. Imagine that your credit score is one of the houses the pigs built.
If your score is 800 or higher, then your house is made of bricks. You’re a solid, exceptional borrower.
A score of 740 to 799 is almost as good. It’s mostly bricks — and a couple of sticks. Still very dependable, and lenders like you a lot.
670 to 739 is not as great as the top two. That’s the house made of sticks. Most lenders still consider this a good score.
And then things get less stable. A credit score between 580 and 669, that’s the little-pig equivalent of a house made of only straw. Some lenders will approve loans with scores in this range, but you’ll likely face higher interest rates.
Any score less than 579 means the big bad wolf already blew your house down, and he may not lend you any money to rebuild it.
For more ways to keep your money safe and healthy, visit our Learning Center.
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