The FICO score is actually accessed to check the credit worthiness of an individual. Moreover, this rating can help you to get the best loan at the best interest rates. As far as the FICO score is concerned it ranges between 300 to 850 points. The average FICO score that you must possess to get the required credit is around 720. However, you must be aware that this mark would not always help you to get the required credit as your lenders might have some other parameters too. In fact, the consideration of these average ratings differ from one lender to another.
What is a FICO Score?
The FICO score actually refers to the statistical representation which adorns your credit report. Your rating would take into consideration all your past and present credit histories which after getting processed via a complex mathematical formula would get set between a range of 300 and 850. Banks and financial institutions would consider this number to determine the risk factor which would compliment your report i.e., higher the risk, higher the rate of interest will be.
What is the Average FICO Score needed for Low Interest Mortgage Loan?
When average FICO score is concerned that might be needed to get a low interest mortgage loan then such a mark would actually differ from lender to lender. However, as it has been mentioned earlier that a FICO rating ranges between 300 and 850, if your score stands around 650 then you can grab the loan without much hassle. In case, the rating is above 650 then you would get a mortgage loan at much lower rates of interest. But in case it is much lower then the 650 mark then you need to work to enhance the credit status.
Check out the following tips which would help you improve your average FICO score:
* Try to pay your bills on time
* In case you have missed any payments then pay it off immediately and stay current
* If you are facing any trouble in paying off the debts then contact your lender
* Don’t follow the short term strategy by closing the unused credit cards
* Try to re-establish your credit history