In mainstream America most credit scores – including the FICO score and the latest version of the Vantage Score – operate within the range of 301 to 850. Within that range, there are different categories, from bad to excellent.
- Excellent Credit: 750+
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 600
But even these aren’t set in stone. That’s because lenders all have their own definitions of what is a good credit score. One lender that is looking to approve more borrowers might approve applicants with credit scores of 680 or higher. Another might be more selective and only approve those with scores of 750 or higher. Or both lenders might offer credit to anyone with a score of at least 650, but charge consumers with scores below 700 a higher interest rate!
The idea of developing positive credit for people in Indian Country is still a relatively a new idea, however, many Native CDFIs are now making headway with being able to develop good credit scores following a solid plan and budget. They often work with people who are low to moderate income. These credit scores no where compete with mainstream institutions for the better clients. There are set up for the people who need technical assistance to get to where they want to be.
Many people in native communities often don’t know the difference between social credit and financial credit. Some older people even feel entitled to credit for what they have done in their lives. For some who endured systematic racism and feel they need to change for a better future, then they definitely want the strength of credit to fuel their twilight years.
Many tribal people who want to access to capital for housing, for micro and small business development, or education will find any array of options. So the burden gets placed on each person to do what they can to develop and maintain their credit score. This takes hard work! So the next time you want to start doing something worthy, then the idea of your credit may rise up and not help you.
Do you have a positive credit history to develop your dreams? First Nations Community Financial has been in the business improving credit for all our clients since 2010. We take great pride in servicing all the clients who need to work on their credit.
One-on-one credit Coaching: Credit Coaching is often done with referrals from other programs and services, which may be mandated. FNCF does accept walk-ins for this service as well. FNCF staff will sit down with anyone and make an effective budget for families of any size. FNCF perfers for people to make a two month commitment to the program to determine if the budget is working. Often people use learned behaviors to make choices which are based on wants rather than needs. This can lead to some very costly decisions later. FNCF can help point the right financial direction.