If you are aware of your credit score, you’re just a step closer to knowing how potential lenders see you. Especially when you apply for credit cards or a loan.
Now, what does your credit score mean? This question has been asked by many people especially those that are new to credit.
Is your credit score good or poor? Well, we will be giving you answers to these questions in this article.
In this article, we will tell you about different credit score ranges and what they mean.
Hence, if you’re new to the world of credit, this is a perfect guide for you.
With that in mind, let’s begin by telling you the different credit score ranges.
What does FICO consider a good Credit Score?
Most people use FICO () to see their credit scores. Hence, according to FICO, below are credit score ranges and what they mean.
800+ (Excellent)
750 to 799 (Great)
700 to 739 (Good)
650 to 669 (Fair)
Below 600 (Poor)
Hence, since FICO is the creator of credit scoring. And is used by most lenders, their credit ranges are accepted.
Now, let’s take a look at each FICO credit Range and what they mean.
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800+ (Excellent)
If you have a credit score of 800 and above that means you have an excellent credit score.
With this credit score, you can get the best of credit cards, mortgage loans, or other financing.
Hence, you don’t have to worry about your application being approved or not. And this is because most lenders are willing to give credit to these people.
Also, lenders offer the best interest rates and other perks to this set of people.
Thus, they can enjoy benefits like; credit card rewards and waived fees.
Once you show lenders that you’re capable of handling credit, they start offering you more offers.
However, to do this, you must have a long history of on-time payments and fewer debts.
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750 to 799 (Great)
Those with a credit score between the ranges of 740 and 799 are said to have a great credit score.
Hence, there is not much difference between those in this category and those with 800+.
So, if you find yourself in this category, you don’t have to stress yourself as you also have a nice credit score
With this credit score, lenders also feel safe to give out credit to you. However, you must have a good record of on-time payments and fewer debts.
Also, your credit history may not be as long as those with 800+ but it is still okay for lenders.
Having said that, those in this category are most likely to get approved and get great interest rates.
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700 to 739 (Good)
If you have a credit score of 700 to 739, you’re credit score is still considered a good credit score.
Hence, with this score, you may be qualified for some credit cards and loans. However, you may not be given the best interest rates. Especially if you fall among the lower end of this range.
Thus, some lenders also consider those at the top of this range as having great credit scores.
Whereas those at the end of this range are treated differently from those in the top or middle.
Generally, those with good credit scores are good at on-time payments. But they may have a shorter credit history.
All the same, this is a good credit score range and you should be happy to fall in this category.
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650 to 669 (Fair)
If your credit score falls in this category you’re considered to have an average or fair credit score.
With this credit score, you may get denied for loans and some credit cards. And even if you get approved for one, you’ll be charged higher interest rates.
Hence, if you fall in this category, you may have some record of late payments or debts. However, you may be new to credit and have little or credit record yet.
If that is the case, you may have to work on your credit history. Thus, lenders see those in the category as possibly risky and may find it hard to give out credit.
Also, those in this range may experience delay in loan or credit card approval. So, if you fall in this category all you have to do is to work on your credit history to move to the next level.
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Below 600 (Poor)
Before we talk about those in this category, let’s brief you about those with scores between 650 and 649.
Those with a credit score of 650 to 649 are those with a history of late payments and bad credit history.
Hence, if you fall in this category, you may be approved for a credit card. However, you will be charged higher interest rates and given lower credit limits.
Now, let’s move over to those with credit scores below 600. Those people in this category are considered to have very poor credit scores.
Hence, they are most likely to get denied credit cards and loans as they are seen as potential risks.
However, the good news is that those in this category are open to getting secured credit cards.
Thus, these credit cards help build up your credit and give you a chance for unsecured credit cards.
Last Words
To sum it up, if you fall under those with fair to poor credit scores, you are likely to get denied for credits.
Hence, you’ll have to work on your credit history to move to a higher credit score range.
However, if you have an excellent to good credit score you don’t have to worry about getting approved.
If you have any questions, drop them in the comment session and we will reach out to you soon.
Having said that, thank you for reading!