On a daily basis, we hear about credit scores, but only few people are aware of its real meaning. For you to understand fully the credit score, you should know the range that you fall into. If you know this, you will be in a better position to request a credit score or improve your score.
FICO credit scores is within the range of 300 to 850; the average is within the neighborhood of 670. Every lender has their own terms and conditions. It is good to know the average range; this will help you in knowing where your score falls. Below is a comprehensive description of FICO credit score range – you can get your free credit score at Credit Score Wiz.
Credit Score Range
- 800 and above: this means that you don’t have a flawless credit; your application for a loan or mortgage will be highly honored by the financial institutions, and you will lowest interest rates. People whose credit scores are above 800, usually have lots of credit, but the good news is that they pay as and when due.
- 720 to 799: this is known as an excellent credit. The difference between this range and the other is meager. If you have this credit score, you will still lowest interest rates.
- 680 to 719: if you are at this range, you will still get anything you apply for, just that the rate will be slightly higher.
- 620 to 679: this is an average or good credit. If you are at this level, lenders will not be quick in offering you anything you apply for. If they do, then it must come with some conditions; higher rates.
- 580 to 619: this is known as a poor credit. It will not be easy getting a loan or mortgage. However, if your application is approved, then it must come with higher rates.
- 500 to 579: this is a bad credit, at this level; the only help you will get is debt consolidation loans.
- Below 500: you may secure some loans, but it must come with very high interest. If you wish to improve your credit score, the best thing to do is to seek for a professional help.