To understand fully the meaning of a credit score, you must be familiar with the credit score ranges. Some people are aware that credit score ranges are between 300 to 850 according to FICO, yet they do not understand the meaning of these ranges. Let us give a brief analysis of them:
800 to 850+ Credit Score Range
You have a flawless credit if your score is within this range. If you are at this rate, you can negotiate for lower interest rates with some financial institutions, especially if you wish to obtain insurance policies and mortgage loans. Unfortunately, the number that falls within this range is about 13%.
720 to 799 Credit Score Range
You will also qualify for a low interest rate if you fall within this range; though this is still an excellent credit score, some financial institutions may still do some check on your credit before approving a low rate for you. I check my credit score free every single month! About 27% of Americans are within this range.
680 to719 Credit Score Range
This is not an excellent credit score, but it is still a good one. If you are in this range, you will be qualified for a good number of loans, only that you will be expected to pay some higher rates. You may have some difficulties in getting best insurance premiums or A-paper mortgage loans. Having this credit score doesn’t mean you have a bad credit.
620 to 679 Credit Score Range
If you are in this range, you will get some loans, but just that very few lenders will be able to help you. Few that will be able to assist will do so with some conditions or restrictions. Start everything within your reach to improve your credit score, because you will enjoy some privileges if you have a better credit score.
580 to 619 Credit Score Range
Your credit score is below average if it is within this range, lenders will be unable to assist you further, but if you are able to get some loans, then such loan will come with a higher interest rate. You will discover that credit banks and bad lenders is the only credit you may be able to get. If you are within this credit score range, try the much you can to evaluate it, and take the necessary steps that will help you in coming out of it.
500 to 579 Credit Score Range
If your credit score has dropped to this level, then you are said to be having a bad credit score. This can come either as a late mortgage payment, collection, bankruptcy or charge-off, and foreclosure. At this point in time, you should do everything possible to repair your credit. Evaluating your credit will be the best thing to do; it means that you have made some credit mistakes that should be corrected as fast as possible.
Below 500 Credit Score Range
If you are in this range, it means that your credit doesn’t have a good positive remark. Getting your free credit score check and considering a professional assistance will be of great help to you.