Credit Score Range
Creditors determine whether or not to give you a credit card or a loan depending on how your credit is scored. Creditors will look at whether or not you own your own home, car, how long you have had a job etc. They also look at the amount of your income, how many payments you currently have, if you have any late payments, you overall credit history, how long you have been using credit, and how many credit cards you have. All of these things will lead a creditor to determine how much risk that you would bring to the company.
The main thing to remember is that credit scoreing systems are different because they are based off of individual experiences from creditors. Each creditor will have certain aspects that are more important to them than others. Because of this there is no way to say exactly what your credit score means in terms of obtaining credit and loans. However, this is a good break down of the credit scores range and you can mold them from there.
Credit Score Ranges
- 700-850 - Very Good Credit, Excellent. This is the score where you will hit the very best rates. Most every lender will be happy to work with you and you won’t have much trouble getting the best rates and any other kind of financial option that you wish to pursue. This should be the goal of every person that is accumulating credit.
- 680-699 - Good Credit. If you are in this category you should still be pleased with yourself. You have good credit and should still be able to get good interest rates on most of you loans. You won’t always get the best rates but you should almost always get approved. This is a good place to be in, and shouldn’t be too hard to get up to the next level.
- 620-679 - Average credit. This usually will get you approval at pretty much any company. You will get decent rates but never the best. You might run into a few hiccups here or there but for the most part you won’t have too much of a problem.
- 580-619 - Low Credit. Most financial institutions will work with you, but your rates will probably be very high. You need to start working on repairing your credit.
- 500 – 580 - Poor Credit. You will have a hard time applying for anything with this credit score. You will get terrible interest rates and probably get turned down most places that you go to.
- 300-499 - Bad Credit. Little to no financial institutions will find you a viable place to invest money. This score is far too risky and is asking for trouble. Going to have to go to great lengths to find extra credit at this score.
No matter if you have a good credit score range, or your range of credit scores could use some work, you can always be working to improve. Take time to get to know your own credit.