Breaking Down Credit Score Range
Article by Gavin Laurel
Your credit score range plays an essential part in determining the status of your financial well-being and comfort. The bigger the number, the better off you are, without a doubt. What most people don’t know is that a credit score can be broken down into a series of ranges. These credit score ranges will place you into a category referring to your financial credit or lending risk for the spectrum of creditors. As you know, a credit score is the fastest and most true to form measure of credit risk. Similar to your score, you want to be in the highest and best tier or credit score range possible. See a theme developing? It’s not organic chemistry, it’s a true numbers game.
Continuing, back to those credit score ranges. Most commonly you will hear of four credit score ranges of credit scores that an individual can be placed into. They are: Excellent, Good, Fair and Poor. A plethora of factors put together your credit score and its four ranges can be broken down and scrutinized into more range, yet we will stick to the basics for this article. At this time, we will break down, or dissect if you may, each of the four most referred to credit score ranges in order from best to worst:
Excellent (720-850 or more) – You need to be in this credit score range to save the big bucks. Creditors want to see you in this credit score range, right? Wrong! Often you will qualify for the elite auto, credit card and mortgage rates deals. This doesn’t help creditors make money on interest payments, which is their bread and butter. Towards the lower end of this range you can often be considered or noted as the “median” in our country. Right smack in the middle.
Good (680-719) – Consider yourself a fraction off of qualifying for the best lending offers. In this credit score range you most definitely can expect to find your fare share of pre-approved credit card offers and certainly will grab a normal termed loan. Yet, a boost to the next level would afford you more rate breaks and credit offers. This is a solid credit score range to be in.
Fair (620-679) – This is where things can get iffy. As you may be aware,the lower you go on the totem poll, the more difficult it is to gain the trust of creditors. You have garnered a bit more of the shady area in this credit score range. Still, if you catch yourself on the top end of this range, that defines you close to the “mean” or average citizen.
Poor (619 and below) – Now you’re really in some trouble. Landing yourself in this credit score range is going to put a damper, burden, strangle-hold…whatever you want to call it…on your financial opportunities. You’ve done some serious damage to your credit to end up in this credit score range, but there’s never a better time to dig yourself out of a hole than now. Its not the end of the world, but you have a long way to go in order to lose your risky credit profile.
There you go, I’ve provided a simple and basic rundown of credit score ranges, their effect on your financial opportunities, and your ability to maneuver in the credit-worthy world. In future articles I will most certainly cover more aspects of credit score ranges and ever dive further into their sub-ranges. For more information, you may want to click here: Credit Score Range
About the Author
A knowledgeable dude who takes personal finance very seriously. I write about anything credit score related, because I find my friends and colleagues need that info most. I hope I can help shed some light! If you care to find out even more, check My Credit Score Range.
