The most common credit score range used by credit bureaus is between 300 and 850. This is also the same range used in the FICO (Fair Isaac Corp.) score, which is considered by most to be the premier credit scoring system.

Consider these numbers as two extremes. 850 means you might get a loan to buy an island and a luxury villa and a yacht. 300, on the other hand, means that your credit is so bad that you can’t get anything.

Actually, that’s quite an exaggeration. Even people with poor credit can get approved for a loan, just as people with nearly perfect scores can get denied. The credit score range reflects only the likelihood of whether you are going to be approved or not. It does not necessarily represent the final decision, because the truth is that there are many factors involved in approving you for a loan and your credit score is only one of them.
However, where you fall within the credit score range is a good indicator.

Good Credit Score

If you have a credit score of 700 or higher you have excellent or very good credit. This also means that lenders will probably offer you better rates and/or discounts.

For some lenders, the best credit score ranges are those numbering 720 and above. But if you score between 680 and 699, that still means good. It means you can get a normal loan with normal interest rates and normal loan rates.

A credit score range of 620 to 679 is average and majority of people in the United States have scores along that range. It means you won’t get denied but the terms are not going to be that generous either.

Low Credit Score

A credit score range of 580 to 619 is considered a low credit score. It does not necessarily mean, however, that you cannot get any credit. In fact, banks and brokers would be all too willing to lend you money but on their terms. This means that yes, you can get a loan but the interest rates are probably going to be very high. But the good news is that your score is not so low that it would be impossible to move it to "good" status. Through simple credit-fixing tips, you can change low credit to good credit.

Bad Credit Score

Below 580 and your credit is bad. You may still get a loan but the terms will be harsh. However, should you decide to take it and you manage your payments you will have a new start to building your credit and, next time around, the terms should be more favorable.

Tags: credit-score-range, FICO

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