From a comment I put on Facebook:
It was not until yesterday that I realized the full import of Ephesians 1:7 and Colossians 1:14. Both are saying we have been released because we were ransomed by his blood (Gr. apolutrosis), so that we now have aphesis (release/deliverance of) our trespasses. There’s a cool part about this I’ll put lower in this post.
The import of those Old Testament passages I gave (1 Sam. 15:22; Hos. 6:6; Ps. 51:16-17; Micah 6:6-8) is that God has always forgiven the righteous their occasional stumblings. Not many of us, however, were righteous, so God gave his Son to ransom us out of our slavery to sin (as described best, I think, in Ephesians 2:1-3). The purpose was mainly to make us righteous, and the result is that as people who do good, we are among the blessed to whom God does not impute sin (Ps. 32:2; Rom. 4:1-8).
According to Psalm 32:2, those are the people in whose spirit there is no deceit. This aligns will with 1 John 1:7ff, where those who walk in the light–exposing their deeds, good or bad, to God all the time (cf. Jn. 3:19-21)–have ongoing fellowship with one another and ongoing purification from sin.
The cool part I mentioned about the ransom is the parable of the strong man, whose house can only be plundered by one even stronger. Jesus gave himself as ransom in our place, but Jesus was stronger than Satan, bound him and plundered his house, then “triumphed over him in it” (Col. 2:15). The picture there is that he made a triumphal march, like a Roman general would, with his defeated enemies walking in chains behind him. Because he plundered Hades, its gates can no longer withstand the church.
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There are a lot of opinions and rumors about Constantine, the Council of Nicea, and the events of the fourth century that changed Christianity to Christendom. Not only will you get the incredible story, with all its twists, plots, and intrigues, but you will find out how history is done and never wonder what is true again.
The Rest of the Old, Old Story 
Let’s correct something you wrote and make it biblical. The righteous would all be condemned if it were not for the fact that our God is “a merciful and gracious God, slow to anger, and abundant in loving kindness and truth, keeping loving kindness for thousands, forgiving iniquity and disobedience and sin; and who will by no means clear the guilty” (Ex. 34:6-7). God has always been able to separate those with a pattern of righteousness from those who are wicked, or in this case, “guilty.”
These kind of statements are all over the Old Testament, not just in Exodus 34. You are wrong that all people without Jesus. Most would, so God rescued us from slavery to sin through Jesus Christ. Look at the translation of Ephesians 1:7 at https://studybible.info/interlinear/ephesians%201:7. That web site does not leave us wondering if the verse should be read that way. You can click on the Strong’s number above each word and see the definition from several Protestant lexicons.
Jesus did not die so God could forgive sin. God had been forgiving sin throughout the Old Testament, even telling people he wasn’t interested in their sacrifices, just their repentance (Ps. 51:16-17; Micah 6:6-8; are 2 of many examples). Jesus died so we would be people who repent, not so God could forgive sin. See Romans 14:9; 2 Corinthians 5:15; and Titus 2:11-15 to help understand that.
Another good passage to help you understand is Ephesians 2:1-10. Notice what it is talking about when it says we were saved. We were slaves to sin (verses 1-3), and by grace through faith and apart from works, he made us new creations, created in Christ Jesus to do good works (v. 10). This is salvation by faith. Then read Ephesians 5:5-7. That is a final judgment according to works, and the requirement is patiently continuing to do good (Rom. 2:7), not sinless perfection.
Apart from God’s grace, including God’s “common” grace, none of us can be righteous. Able, Noah, Cornelius, anyone whom the Scriptures describe as “righteous” would all be condemned to hell if it weren’t for God’s grace and mercy and the work that Jesus Christ accomplished on the cross. The cross isn’t just for those of us who can’t be righteous on our own, none of us can be fully righteous on our own, only Jesus.
“Why do you ask me about what is good?” Jesus replied. “There is only One who is good. If you want to enter life, keep the commandments.” – Matthew 19:17
What did Jesus mean? That there is no one most of us would consider good? No, he meant that there is no one perfectly good except God alone, therefore all of us are deserving of his wrath and judgement, if not for his mercy and grace, even “righteous” men such as Noah, etc.
Grace is commonly misunderstood among evangelicals. Read Romans 6:14 and Titus 2:11-12. Grace enables us to actually live righteously, like Joseph and Daniel and Job did. Then we, too, can be rewarded with eternal life like they did (Rom. 2:6-7 & 6:22; Gal. 6:7-9).