The credit score ranges commonly used are FICO and VantageScore, which ranges from 300 to 850. Those who fall between 720 and 850 typically become eligible for the lowest interest rates or best credit cards. Howbeit, lenders use a large number of different models to determine a credit score, thus they might vary depending on the context.
What is a Credit Score Ranges?
A credit score range is a number that represents the risk a lender takes when you borrow money. The most commonly known and well-accepted measure is the FICO Score designed by the Fair Isaac Corporation and used by credit agencies to indicate a borrower’s risk. Another known model is the VantageScore, which was designed through a partnership between three credit reporting agencies: Equifax, TransUnion, and Experian.
what credit score range is good – Understanding Credit Score Ranges
A credit score between 750 and 850, suggests the individual has been consistently responsible, whole scores between 700 to 750 are considered above average.
Scores play a greater role in the interest paid on loans, as well as for deciding factor on whether a request for credit is approved or declined.
People with low credit scores, below 600, can improve their credit score, by making on-time payments, cutting down debt levels, and maintaining a zero balance on unused credit accounts.
What credit score range is good – Credit Score Ranges: Where Do You Fall? (2020)
Excellent Credit Score: 800 – 850
Consumers in the category of 720 – 850 are considered low risk when it comes to borrowing and managing. They are the prime candidates to qualify for low rates. The best score falls between 800-850, and people with this score have a history of no late payments and low balance on credit cards. They also stand a chance, of getting lower interest rates on mortgages, loans, and credit lines.
Very Good Credit Score: 740 – 799
Consumers in this category are considered generally financially responsible when it comes to money and credit management. Some of their payments include loans, credit cards, utilities, and rental payments, which are made on time. Under this category, credit card balances are relatively low compared to their credit account limits.
Good Credit Score: 670 – 739
A consumer with a credit score between 670 and 739 are placed near or slightly above the average of U.S. consumers. Borrowers under this category, can still earn competitive interest rates, but are unlikely to command the ideal rates of those in the two higher categories, and can have a hard time qualifying for some credit types.
Fair Credit Score: 580 – 669
Under this category, borrowers here are seen to be in the Fair or Average category. There may be some dents on their credit history, but they are still likely to be extended credit by lenders, even though not at very competitive rates.
Poor Credit Score: Under 580
A poor credit score falls between 300 – 579. A consumer under this category has a significantly damaged credit history. Borrowers here, have very little chance of obtaining new credit. If you are in this category, it is time to talk to a financial professional about what you should do to improve your credit score.
By saying no credit, we mean that you may be under 350 or do not have any credit account. If this is the case, it may be that you have not yet established any accounts and do not have a credit history.
If you find yourself here, it is not the end of the road, you can talk to your local lender about its borrowing requirements. Once you get approved for your first loan or credit card, ensure you set up a responsible repayment pattern immediately to establish a good credit record.