The Basic Credit Score Ranges

It is important to know your credit score range because most lending institutions classify consumers on 4 different credit score ranges.

In order to find out where you fit in these ranges you should obtain copies of your credit report from the three credit bureaus. Knowing your credit score range will help you to establish your credit options.

619 or Below

You will not want to be in this credit score range particularly if you are contemplating of applying for a mortgage or loan in the near future. The fact is that lenders will pay the least amount of consideration to people in this credit score range, categorizing them as high risk borrowers with increased potential for defaulting.

If you belong to this credit score range the probability is that you would be experiencing massive credit worries such as late or default payments on loans, bankruptcy, lien charges or any other situation which would reflect negatively on your credit score. In the highly unlikely event of you qualifying for a loan it will still be subjected to very high interest rates.

620 to 674

Though this is an improvement from the above credit score range still it would indicate that you have a significantly tarnished credit background. The reasons would be your late payments on loan installments and credit cards which have been run over the limit. If you have extended your credit facilities to the maximum your credit score will be somewhere in this range.

Lenders pay attention to the debt to income ratio when considering a consumer for credit eligibility. Therefore, your credit history will play a big role when deciding whether or not you will be qualified for a loan.

675 to 719

Though you have not yet achieved perfect positioning with this credit score range, you are still in a far better position than the ones in the previous levels. Your application for credit will not be rejected outright and most lenders will be willing to overlook some of your sporadic late payments which have put you in this credit score range. Though you will not be considered as a high risk borrower your interest rate will still remain rather high in this credit score range.

720 or Above

Now this is the credit score range you should aim for before making the move for a loan application. In this level you can enjoy the best interest rates along with other desirable options made available to consumers with positive credit histories.

Knowing this information about the basic credit score ranges will help you to successfully plan your credit movements in the future.