Usually your FICO score determines the rate of interest an individual is offered by the bank while availing credit. It ranges between 300(very bad) to 850(very good). Usually a score of 750+ means that the individual gets a very good rate of interest and payback terms. But right now with the credit crunch going on in US markets, having a good FICO score will not matter much because the bank will be very weary of giving loans. Moreover, with the Fed tied up in trying to clean the mess left by Freddie and Fannie and the recent fall of giants Lehman Brothers and Merrill Lynch, banks will be forced to be conservative and stringent while giving credit.
Tuesday, September 16, 2008
FICO Won't Matter Right Now
Usually your FICO score determines the rate of interest an individual is offered by the bank while availing credit. It ranges between 300(very bad) to 850(very good). Usually a score of 750+ means that the individual gets a very good rate of interest and payback terms. But right now with the credit crunch going on in US markets, having a good FICO score will not matter much because the bank will be very weary of giving loans. Moreover, with the Fed tied up in trying to clean the mess left by Freddie and Fannie and the recent fall of giants Lehman Brothers and Merrill Lynch, banks will be forced to be conservative and stringent while giving credit.
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