Credit Score Ranges
A credit score range is important for determining eligibility for various financial products. It will also give you an idea of the terms lenders are willing to offer you. This overview article will benefit you in terms of understanding credit score ranges.
Credit scores fluctuate, but they are not necessarily a sign of bad credit or bad habits. A slight fluctuation in your score may not affect you greatly, but it can affect the terms that lenders are willing to offer you. Knowing your credit score can help you decide on various financial products. It can also determine which terms and conditions a lender will offer you. Here are the Credit score ranges that will help you see whether your credit score is okay or not.
A low credit score usually means you’ll be charged a high-interest rate. However, there are ways to improve your credit score. Getting your score up to the desired range will help you qualify for a better deal.
What is the Credit Score Ranges?
There are a variety of credit score ranges. The best scores are considered excellent, while those in the middle are considered good. The lowest scores are considered poor, and those below six-forty are considered subprime. Each range has advantages and disadvantages, and knowing which is right for you is essential.
The two most popular credit-scoring models are VantageScore and FICO. Both of these score models use different methodologies to determine your creditworthiness. The ranges for each model overlap to some extent, but they may have different meanings. For example, a VantageScore 3.0 score of 661 might place you in the “good” range, whereas a FICO score of 661 would make you a fair borrower.
| FICO |
|---|
| 800 – 850: Exceptional |
| 740 – 799: Very good |
| 670 – 739: Good |
| 580 – 669: Fair, |
| 300 – 579: Poor |
| Vantage Score |
|---|
| 781 – 850: Excellent |
| 661 – 780: Good |
| 601 – 660: Fair |
| 500 – 600: Poor |
| 300 – 499: Very Poor |
If your score exceeds 670, you’ll be viewed as a “good” credit risk. This means you’re considered reliable, though you’ve made a late payment in the past or may have a high level of debt. In contrast, if your score falls below this range, you may not qualify for the best rates, and you’ll likely be unable to get the best offers.
