Truth About The Credit Score Range

If you have been interested in getting financing or plan on getting a loan in the future it is a wise idea to know how to increase your credit score range so that your report is looking impressive to any of the potential lenders. With a strong FICO score you will be qualified for low interest rates and the best financing terms that may save you thousands of dollars.

A credit score range will be from 300 to 850. The lower the score, the worst off you are. When you have a high score that is when financial institutions such as banks will provide you with the most attractive financing plan.

History of the FICO Score

In 1958 the Fair Isaac Corporation developed what is now known as the FICO score. This score was designed to be a representation of credit worthiness that can be shown in a number. This credit worthiness is based on the chances of a person to service their debts on time.

When your FICO score is high, this shows the lenders that you are more suited to take on credit card payments, auto loans, or even mortgage payments better then those who have a low FICO score.

The Credit Score Range Meanings

Below includes a list of credit scores and their related meanings. As you can see the higher the score, the better off you are.

780-800+ The Best Credit Score Ranges

Being in this position is a big deal. It is practically flawless credit that any bank or loan officer would be drooling over trying to get you to do a loan with them. It is also common to have a lot offers in the mail with attractive financing terms on credit cards or even mortgages. Any lending institution will be bagging you for your business because they know that you can be approved for anything.

680-780: Very Good Score to Have

When your credit score range is in this area you are practically guaranteed approvals on loans. These scores are the most common to have and could grant you nice loans with attractive terms. If you are in the high 600′s then you should try some techniques to boost your credit score scale up to the 720′s area because this range will make a huge different.

Credit score ranges in the 690-790′s are very attractive to lending institutions and banks. They may even provide the options of unsecured financing where you would not even need to collateralize the loan. Stated income loans may even be presented so that you do not have to show your tax records or other documents.

620-680: The Fair-Good Credit Score Range

You may find that your payment terms and interest rates are not very pretty when you have these scores but you certainly will be in a much better position of getting approvals for your loans.

If you are considering buying a home it would be best to spend a little more time to increase your scores up to the 700 range before locking in on a mortgage. When you lock into a mortgage it could be for 30 years and your interest rates would reflect this score. So in the long run if you boost your scores to 700+ then you could be easily saving thousands of dollars if you get a better interest rate.

500-620: Poor Scores

When getting a loan in this credit score range you will be paying much higher amounts on interest rates. It would be a wise move to get loans to consolidate debt so that you are not carrying more debts on your record. If you go this route you must make sure that you make all your payments on time or things could get even worse.

499 And Below: The Worst Credit Score Range

This is the worst range to be in. It is a sub-prime range that many find difficult to get out of. You may need some serious help by credit counselors to help get you out of this position. You should first try out the strategies given in this credit score scale information. You may even need to remove negative inquiries off your report.

Rates will be on the higher side if you get a loan with these scores. You may not even be approved for most loans when you carry scores that are in this area.

Tip To Boost Your Credit Score Range

Checking you credit report on a regular basis will help to ensure that you know where your scores are and you are in complete control of them. With problems such as credit card limits being changed and creditors changing your policy without you knowing, you could lose a good amount of points off your FICO score without being aware of it.

Identity theft is also becoming a major problem these days as well which means that pulling your free credit profile is a must if you want to stay on top of any changes that take place. You also need to know where your scores are before you make improvements to boost your scores. That way you’ll know what’s really working for you.

To visit our main page to boost your scores and pull your free credit scores so you know exactly where you stand on the credit score range today.