Credit Score Range: 4 Things to Know

The credit score or Fico score is a three-digit number between 300 and 850 that is a measure of the credit worthiness of a person. A good credit score can help you get a loan that you have applied for to buy your dream house or even to land your dream job. Furthermore, if your score falls in the good range, you can negotiate a better rate of interest for your loan and even the amount of premium that you pay for your personal, home or auto insurance. Keep reading to know more about these.

• Excellent Credit Score Range

 FICO score between 730 and 730 is considered an excellent score. However, it is quite improbable to get a perfect score of 850. Nonetheless, anything above 730 is taken as a sign of brilliant payment history.

• Great Credit Score Range

 A credit score between 729 and 700 is considered a great credit score. This implies that you will not have any problem in getting new credit lines from banks and other financial institutions. In addition to that, you can get institutional debt at very low rate of interest.

• Good Credit Score Range

 Those with a credit score between 699 and 670 fall in the range of good credit score. These people usually do not have any unpaid bills, use their credit cards wisely and do not make impromptu purchases that can land them in a vicious cycle of debt. If your credit score falls in this bracket, you can secure debt at reasonable rate of interest and even enjoy an edge while negotiating your insurance premium.

• Average Credit Score Range

 A FICO score between 669 and 585 is classified as an average credit score. People whose FICO score falls in this range find it difficult to get loans at desirable rate of interest as they are perceived as high-risk candidates by banks and financial institutions. However, you can improve this score by making timely payment of bills and using the credit lines extended to you wisely.

Anything below 584 is considered a bad credit score and signifies a bad payment history. In case your credit score is below 584, it is high time that you take some steps to improve the same, especially if you are planning to apply for a loan and do not want to pay an extremely high rate of interest and heavy collateral.