Credit Report Score Scale What Does It Mean
http://creditfederal.com/article/articles/636/1/Credit-Report-Score-Scale-What-Does-It-Mean
By CreditFederal.com - A good or bad credit personal loan, auto and mortgage financing, and credit card resource.
Published on 02/7/2009
What does my credit report score mean? Do I have a good or bad credit rating? Get your FICO score and review the credit score scale for your rating's meaning.
Credit Report Score Scale for Rating Meaning
Does my credit rating mean I have a good or a bad credit score?
In general, a score of 720 or higher is considered a very good credit score. However, there is no single "cutoff" score used by all companies, and there are many additional factors besides your credit score that companies use to determine your credit risk and corresponding interest rate or down payment.
Here is an overall score chart to give you a good idea of your credit score meaning:
Below is how VantageScore ranks scores:
901-990 = A (Super Prime)
801-900 = B (Prime Plus)
701-800 = C (Prime)
601-700 = D (Non-Prime)
501-600 = F (Bad Credit High Risk)
FYI: Ordering a copy of your credit report does not provide you with your credit score. Even the government law that provides you with an annual free credit report does not include the credit score. Read how to get your credit score.
When you buy your score, make sure it's the FICO score. Some businesses will sell or give you credit scores that are not FICO scores and may not be used to make lending decisions. These services may also give you credit management advice that does not apply to FICO scores and could actually hurt your credit standing with lenders. Note that Fair Isaac and myFICO are not credit repair organizations or similarly regulated organizations governed by the federal Credit Repair Organizations Act or similar state laws. Fair Isaac and myFICO do not provide socalled 'credit repair' services or advice or give advice or assistance regarding cleaning up or improving credit, credit history, or credit rating.
Average US Credit Score
A Credit Federal visitor asked this financial question: "With all the credit problems going on, what is the average credit score now in the US?
Answer: "The current average US credit score (see article date) is 692."
Is that a good, or a bad credit score? There's no one mutually agreed score cutoff used by all lenders, so it's difficult to say exactly what a good FICO score is outside the context of a particular lender's decision. For example, one lender may offer lower interest rates to people with FICO scores above 690 while a different lender may prefer 710. Consult the lender who may be able to give you guidance on their particular criteria.
In general, a score of 720 or higher is considered a very good credit score. However, there is no single "cutoff" score used by all companies, and there are many additional factors besides your credit score that companies use to determine your credit risk and corresponding interest rate or down payment.
Here is an overall score chart to give you a good idea of your credit score meaning:
- Below 580: A person whose credit score is in this range is considered to have very bad credit and is a high risk, and will typically be required to provide a substantial down payment or collateral, as well as paying a higher interest rate.
- 580-620: These are also considered to be bad credit people, but not as bad as though below 580. People in this range will be reviewed by companies with a critical eye and will need compensating factors to be approved for most loans or services.
- 620-680: Persons with these 'some credit problem' scores will usually fall under standard company rules and have less flexibility in choosing the better loans or services.
- 680-720: The average person has credit scores in this range and will usually not be able to negotiate the best terms.
- 720 or Higher: People with scores of 720 or higher are considered to have prime, super credit and will have a good chance of obtaining loans at the best interest rates. These loans may require less documentation and paperwork, and potentially less or no down payment or collateral, as well as no cosigner requirements.
Below is how VantageScore ranks scores:
901-990 = A (Super Prime)
801-900 = B (Prime Plus)
701-800 = C (Prime)
601-700 = D (Non-Prime)
501-600 = F (Bad Credit High Risk)
FYI: Ordering a copy of your credit report does not provide you with your credit score. Even the government law that provides you with an annual free credit report does not include the credit score. Read how to get your credit score.
When you buy your score, make sure it's the FICO score. Some businesses will sell or give you credit scores that are not FICO scores and may not be used to make lending decisions. These services may also give you credit management advice that does not apply to FICO scores and could actually hurt your credit standing with lenders. Note that Fair Isaac and myFICO are not credit repair organizations or similarly regulated organizations governed by the federal Credit Repair Organizations Act or similar state laws. Fair Isaac and myFICO do not provide socalled 'credit repair' services or advice or give advice or assistance regarding cleaning up or improving credit, credit history, or credit rating.
Average US Credit Score
A Credit Federal visitor asked this financial question: "With all the credit problems going on, what is the average credit score now in the US?
Answer: "The current average US credit score (see article date) is 692."
Is that a good, or a bad credit score? There's no one mutually agreed score cutoff used by all lenders, so it's difficult to say exactly what a good FICO score is outside the context of a particular lender's decision. For example, one lender may offer lower interest rates to people with FICO scores above 690 while a different lender may prefer 710. Consult the lender who may be able to give you guidance on their particular criteria.