Most of us, are not exemplary citizens when it comes to timely payments, but not complete borrowers in that sense. Most of the American population has fair credit and that means most people would have made a mistake in some areas and has affected their credit rating negatively. The younger generation is yet to learn financial management and fair credit much faster. Most of us are victims of financial mismanagement and end up in a sticky situation. However, the best approach would be to remain truthful with the lenders and explain the actual situation. Communication can solve a lot of problems for many people, and making some sensible changes can help in improving the credit rating.
The rough estimate of a fair credit score is in the range of 640-680. Generally, those with a rating of 680 and above would be offered the best deals, and anyone who has a rating below 640, lenders will simply avoid giving these individuals any loans.
The ones with a fair credit score normally have a couple of delinquent accounts, and would have in all probability failed to pay the revolving balances in full, and will have a history of poor debt-to-income ratio. Fair credit scores can also have an impact, if one is to rent an apartment. Landlords always check on the credit scores of prospective tenants.
However, at times the fall in credit rating, may not be the customers fault and, it could be an error on the part of the credit reporting agencies. Sometimes the card issuers can make errors while giving personal information to the reporting agencies, and this could lead to a fall in credit scores or credit rating. Hence, one is advised to keep regular tabs on the credit reports and bring any errors to the notice of the agencies immediately. Especially, after paying off huge debts, it is essential to keep a check on the credit reports.
With a fair credit score one will have to work very hard at improving the score and moving up in the credit rating. It is better to have frank discussions with the lender and get good deals on their loans. Most of the time paying a higher down payment helps in exchange for better rate of interest. With some minimal planning and execution it is easy to save a huge sum of money.