Where do you fall in the credit score range? There’s a lot of emphasis on the exact score but it’s more important to know where your score falls in the range.
What’s Considered Good Credit
For a score with a range between 300-850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Experian website indicates “most credit scores fall between 600 and 750.”
Common Factors That Make Up A Typical Credit Score
The most commonly used credit score is known as FICO, a private company, that created an algorithm and scoring model to predict the likelihood that a person will pay their debts. The scores use only information from credit reports. It is important to review your report to ensure they are accurate.
- Your bill-paying history
- The number of accounts you have and what kind
- How much of your available credit you are using
- How long you have had your accounts open
- Your recent credit activity
- Whether you have had a debt collection, foreclosure, or bankruptcy, and how old these are
By law, the calculation of your credit score cannot use or take into account factors such as race or color, religion, gender, national origin, or marital status.
Credit Score Ranges
There are different types of credit scoring systems and therefore different credit score ranges. The FICO credit score gets the most mention. But there are multiple credit scores available to lenders. Each organization uses its own proprietary algorithm and has its own range.
- FICO Score range: 300-850
- VantageScore 3.0 – 4.0 range: 300–850
- PLUS Score: 330-830
- TransRisk Score: 100-900
- Equifax Credit Score: 280–850
Where Does Your Credit Score Fall on the Range
Currently, the two well-known scoring methods used are FICO and VantageScore. As noted earlier, FICO scores were created by FICO. VantageScore was created through a partnership of the three credit bureaus Experian, Equifax, and TransUnion.
The FICO and VantageScore credit scores use a range of 301 to 850. Within that range, consumers may fall into different categories from bad to excellent credit.
- Excellent Credit: 750+
- Good Credit: 700-749
- Fair Credit: 650-699
- Poor Credit: 600-649
- Bad Credit: below 600
These score categories are an easy way to know how lenders may view your credit history. But keep in mind lenders have other guidelines for approval such as income and debt-to-income ratios.
For example, some lenders may consider any score under 700 a high risk and therefore charge a higher interest rate. While other lenders may approve a credit application with a 640 and above score.
In summary, knowing where your score falls in the range can help you shop for the best rates with more confidence. Check your credit score today with a free credit score app and monitoring tool. Want a great choice? Credit Karma is a great option with access to 2 credit scores!
