Credit Score question

Kyougu

So believe it or not, I had never checked my credit score. I think it may have been out of fear, since when I was 18 I got irresponsible with a credit card (cliche, I know). I took care of the debt about a year or so later, but it had been turned into a decent enough debt by the time I did. Since then I been way more responsible though.

Anyways, I checked through one of the credit reporting sites and turns out I have a score of 700. I really know nothing about the scores, so I'm not sure how good or bad this is. I just moved about 3 months ago, and I'm planning to try and get a new car in a couple of months (I drive a 92 model). Will this score hinder/help me with that?

VisionOfClarity

TBH I don't know but here's wiki: http://en.wikipedia.org/wiki/Credit_score_(United_States)

shugarae

From my understanding, 700 is pretty good... 600-700 is generally average, 700-800 is above average, and 800+ is outstanding. It shouldn't hinder you in buying a new car, but I would suggest going to a local credit union to get your loan sorted out ahead of time. The dealership might have some good financing offers too, but they're less forthcoming about what "on approved credit (OAC)" actually means.

JohnnyCache

700 is high average. About normal for someone who generally pays things off and doesn't have a car or mortgage.

VThornheart

And remember, for most people it's almost impossible to get a score of 800+. A credit score of 700, combined with being able to prove that you can handle a given loan financially, should be able to secure you pretty much any kind of loan you can hope to get.

Just remember that, when getting a loan, you need to not just show that good credit score (and it IS a good score, rest assured Keep it up!), but also that you'll be financially able to pay the loan off. For instance, if you make $30k per year and you try to buy a $300k house with even $60k down, reputable banks will see that you wouldn't be able to afford the mortgage without... you know... starving to death... and they'll turn you down even with your good credit score. Just keep that in mind.

In your case, for example... make sure that the car you buy isn't something that will result in a monthly payment that you can't afford. Either the dealership will be shady and sell it to you anyways (which is very bad for both of you in the long run), or they'll turn you down. But if they do, it won't be because of your credit score.