Credit score ranges are not always straight forward. We break down the credit score ranges in simple terms noting what makes a good score vs a bad score.
Understanding Credit Score Ranges
Having some sort of idea of the credit score ranges is key to understanding if your credit score is good or bad and if it needs improved, how much it needs improved. It is advised to understand exactly where your credit score falls within the credit score ranges so that you have an idea of where you sit relative to others and if your credit score is in need of some serious repair.
Two Different Credit Score Ranges
There are two different credit score ranges that you could see out in the market. The first is the FICO credit score ranges. This is probably the one that most people are familiar with. It has eight breakouts of credit scores and is the most widely used credit score ranges when people are applying for credit cards, loans, etc… It is also the credit score ranges utilized by the three credit reporting agencies Equifax, Experian and TransUnion.
The second credit score ranges is the Vantage credit score ranges. This credit score ranges uses an A to F grade system similar to what you would find in a typical high school.
An Overview of the FICO Credit Score Ranges
The FICO credit score ranges is as follows:
- less than and including 499
- 500-549
- 550-599
- 600-649
- 650-699
- 700-749
- 750-799
- 800+
What It Means to Move Across the Different FICO Credit Score Ranges
If you want an idea of a good score versus a bad score, it is best to have a score towards the higher numbers in the credit score ranges. Falling below 600 would be a credit score in need of some serious repair. Falling between 600 and 699 in the credit score ranges is lower than the majority of the U.S. and could use some tweaks to be improved. You may struggle to acquire credit and you are going to have much higher rates and payments than people with scores over 700 in the FICO credit score ranges. Moving between the different brackets is very important. If you have a very high score, there may be less of a benefit of going from 780 to 820 than there is when you move from 580 to 620 within the credit score ranges. Small improvements can make a big difference when jumping between the lower brackets within the credit score ranges. The higher your score, the less advantages you have for improving your score.
What is a Good Credit Score Using the FICO Credit Score Ranges
Understanding if your score is good or not can change through the years. The credit score ranges are judged based on where the majority of your peers fall across the different FICO credit score ranges. Recently, having scores over 700 is practically a must to get a decent rate and fair payments. If the majority of consumers begin to fall within the higher credit score ranges (ie. 750+) then the norm is going to shift as well and your score will be expected to be higher also. The “norms” change over the years so understanding your credit score and the different credit score ranges is imperative. But as a general rule, I would shoot for a score over 700 to be sure that you are falling in the higher portion of the credit score ranges.
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