What does a credit score range mean?

What does a credit score range mean?

Credit scores are computed using a formula that considers factors such as payment history, overall debt levels, and the number of credit accounts the individual has open. A score between 740 and 850 suggests the individual has been consistently responsible, while scores between 700 to 750 are considered above average.

What are the 7 credit score ranges?

Each lender sets its own standards, but here’s a rough breakdown of how lenders view various groupings of FICO® Scores:

  • Exceptional: 800 to 850. FICO® Scores ranging from 800 to 850 are considered exceptional.
  • Very good: 740 to 799.
  • Good: 670 to 739.
  • Fair: 580 to 669.
  • Poor: 300 to 579.

Why is the credit score range 300 850?

Currently, the FICO Score 8 is the most commonly used credit score model. While the industry-specific FICO Auto and FICO Bankcard Scores are judged on scales that run from 250 to 900, the base FICO Scores have a smaller range of 300 to 850. The higher numbers always indicate a lower credit risk.

What is a good and bad credit score range?

A score of 720 or higher is generally considered excellent credit. A score between 690 and 719 is considered good credit. Scores between 630 and 689 are fair credit. And scores below 629 are poor…

What exactly constitutes a good credit score?

Excellent: 800 and higher

  • Very good: 740 to 799
  • Good: 670 to 739
  • Fair: 580 to 669
  • Poor: 579 and lower
  • What your credit score range means?

    Consumers with a credit score in the range of 720 to 850 are considered consistently responsible when it comes to managing their borrowing, and are prime candidates to qualify for the lowest interest rates.

    What is the range of a poor credit score?

    “The typical range for credit scores is between 375 and 900, with 375 indicating a poor credit risk, and 900 indicating a high liklihood that any credit extended will be repaid as agreed, although there is a lot of disagreement as to what the bottom and top numbers of that range truly are.”.