Thereâ€™s a lot of math that goes into computing your credit scores, but at the end of the day, a fair credit score is defined as being between 649 and 699. Hereâ€™s how a fair credit score sits in relation to other credit scoring classes:
Having a good or excellent credit score unlocks a lot of advantages, such as lower interest rates and better approval odds for high-value credit cards and other financial products. These advantages will result in more dollars in your wallet at the end of the day. For example, having a high credit score can save you tens or even hundreds of thousands of dollars in interest payments over your lifetime, especially for big-ticket loans like a home mortgage.
But if you have a fair credit score, donâ€™t fret! There is a reason that your score is less than optimal, and thus there are real, concrete steps you can take to boost your credit score into the good and excellent range.
If you play your cards right, you can even join the exclusive 800+ credit score club (unfortunately, itâ€™s not an official club, and you donâ€™t get a shower of balloons and confetti once you reach it â€” but you will get access to some of the most exclusive financial products).