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Credit Score Range: Overview
A numerical expression which reflects in a 3 digit number based on individual credit files is known as Credit Score and it is based on information related to the credit report that is sourced from credit bureaus. A Credit Score ranges typically from 300 to 850.
There are many different credit scores with differing ranges. When you request a credit score from any Credit bureaus you will receive not only a score but also the explanation of number regarding how lenders will view your creditworthiness.
You’re Credit Score and the way it is calculated may vary between each of the Credit Bureaus reason being not all creditors report the same information to all credit agencies. Most of the creditors sometimes do report to all the credit bureaus.
What Is Credit?
Credit is based on the trust that payment will be made in future. Borrowed money from credit issuer may be in the form of a loan and the lender might be a financial institution or bank and the amount is paid back based on the agreed period of time. Credit is provided with a finance charge that is known as Interest. The credit comes from home loans, auto loans and credit cards with a promise to pay back.
What Is a Good Credit Score Range?
Lenders use your 3 digit credit score that will help them to decide to approve or not for a credit card or loan. The higher the score, the chances are better for your credit getting approved. A good credit score range is from 700-749. At this range there is a good possibility of getting loans.
What Are Credit Scores Ranges?
The most common used credit score ranges are from 300 to 850. Each lender sets its unique and own standards and this constitutes Credit Score Ranges.
- Excellent/720 plus – If you have higher the credit score the more chances of getting a loan and at best interest rates. It reflects that you have managed your finances successful and very well, avoiding late payments.
- Good Credit/690-719 – Good possibility of getting loans and you will get credit but not like the excellent credit score ones. Every lender is unique and they have their own definitions of good credit score. In credit industry when determining an individual’s creditworthiness, each creditor views from their own criteria.
- Average Credit/630-689 – This is also known as average or acceptable credit score as in this, you were or in trouble recently and after difficult times also you are focusing and building your credit score. At these score creditors usually charge high interest and also you are expected to be asked for any collateral for your required credit and also you will be asked for any down payments. At this time you have to be very careful to find out the all the possible ways that will help you to build a good credit score, timely payment and strategic planning.
- Poor Credit Score/300-629 – This score may arise due to bankruptcy and this is one of the lowest credit score and you have very fewer options.
This might be a time for you to contact credit counsellor experts and plan the actionable aspects to get back to your healthy credit score and to be back on the track.
What is the Credit Score Range for Experian, TransUnion & Equifax:
If you are applying for any credit like personal loan, home loan, car loan or even a credit card, the first aspect the lender focuses is checking your credit score. The lender will approve or deny based on your credit score.
Credit Score is a three digit number that is calculated by using a mathematical algorithm that is used to evaluate your relationship with your credit which is known as credit history and this helps the lender to know your creditworthiness and the more possibilities that you will repay the loan on time. Every creditor has its own definition towards credit ranges for excellent, fair, good, poor and bad credit.
- Credit Score Range for Experian: 300 to 900
- Credit Score Range for Transunion: The Transunion CIBIL credit score ranges from 300 to 900.
- Credit Score Range for Equifax: 300 to 900
Credit Score Range FAQ’s:
1. What is fair Credit Score Range?
The credit score range might be different from each credit bureau reason being every credit bureau has their own set of the mathematical algorithm and with a set of parameters. Typically the Fair Credit score range is 630-689.
2. How to maintain a Good credit Score?
Maintaining a good credit scores always help you to get credit at the times when you need it and some aspects help you to maintain a good credit score that includes
- Never rush to close your old accounts – The more score benefits you will get, the longer your credit history
- Be careful on applying for new Credit – As every new inquiry your make by applying for new credit, may lead decreasing your credit score.
- Always focus on keeping your credit utilization low – At any given time don’t use more than 30% available credit.
- Timely payments – Paying your bills on time always have a positive impact on your credit score.
3. How credit scores calculated?
Some of the factors that are taken into consideration in calculating a credit score are
- The types of accounts and number of accounts you have
- Your available credit vs used credit
- Your payment history
- The time period of your credit history.
4. What range of credit score is considered to get your credit at best interest rates?
A good and healthy credit score will always help you to get the credit at the times you need. At 720 or 720 Plus Credit score range you will not only get credit for sure but also at the best interest rates.
5. How Credit Score Ranges impact you?
Let us understand how different credit score ranges have an impact on your creditworthiness.
- 300 -629 Range Credit Score – This is low credit score and you may get only secured loans.
- 630-689 Credit Score Range – You may get loans from the lenders but with high-interest rates.
- 690-719 Credit Score Range – Your loan will be approved with good interest rates everywhere
- 720 and up Credit Score Range – You will not only get loans for sure but also at the best interest rates everywhere.
6. What hurts your credit Score –
In determining your creditworthiness your credit score is the most important and deciding factor.
Let us know what hurts your credit score.
- Missed Late payments
- Too many credit requests
- Increased Credit/Debt Ratio
- Closing Credit cards with balances that are remaining
7. What is a good credit score range that would help you getting credit?
Generally, anything above 700 range is a good credit score, however, when determining an individual’s creditworthiness, every lender has their own criteria. To achieve and maintain a good credit score above 700 points and more you have to plan strategically all your credits.
8. What are the factors that affect your credit score?
Following are the some of the Credit Score factors
- Payment history includes 35 percent
- Length of credit history includes 15 percent
- Owed Amounts includes 30%
- Types of Credit includes 10%
- New Credit includes 10%
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