Credit Score Range: An Evergreen Guide

For millions of people, understanding the credit score range can be a difficult process. Some will also discover that not only is the credit score range difficult to understand, but the process in which it is used is a slight bewilderment. Here you will discover a bit more about credit scores and how they are used. You will also discover about the different ranges, and how they will ultimately affect the way you are granted credit. The information provided here is meant to clarify some of the issues that pertain to the ranges whether good or bad.

Whether you are applying for a credit card, in-store credit, purchasing a home, renting an apartment, buying a car, getting a job, or buying anything on credit, you
will quickly discover that if you have a low credit score, you will find it extremely difficult to secure credit – if you are offered credit at all. People that fall within the lower credit score range will end up paying higher interest rates because credit providers feel that you are a higher risk for payback. Now, it’s important to remember that there are a variety of reasons people will have a lower credit score.

The reasons are not always because they fail to make their payments on time, or that they are not responsible. There are millions of people that simply have no credit. These are young adults that have never bought anything on credit in which they can be scored by. There are other individuals that simply live within their means and have never had the need to obtain credit, therefore they have never bought anything that has required scoring. Now, it’s important to understand that no credit, in many cases, equals bad credit or a low credit score.

In addition, there are other people that have fallen on tough times such as lost jobs, medical bills, or circumstances out of their control. As a result, they were unable to make their payments on time which resulted in a negative scoring on their credit. This negative scoring has eventually put them in the lower credit score range making it difficult for them to obtain credit. With that being said, now you know how you can get into the lower credit score range. After talking about the different ranges that are available below, it will be important to talk about how you can improve your credit so you too can enjoy a better credit score.

• 300-450: This credit score is considered to be the lowest possible credit a person can have. Anything that comes back on your credit report that is lower than the score simply means you either do not have credit, or you are not credit worthy. If you ever credit score that reflects this number, there is work that needs to be done in order to get your credit score at an acceptable range.
• 450-500: With a credit score 450 to 500, you are still considered to be in a very low credit status. There may be a lot of different imperfections on your credit report that need immediate attention. This could also mean that you simply do not have credit of any type, and a lender or creditor will not move forward with providing credit as long as this score stays where it is. You will need to quickly remedy this issue by finding out the information on your credit report. Once you have remedied the problem, and have reported it to the credit bureau, over time you will see the score rise.
• 500-550: Believe it or not, there are people that have been able to obtain credit with a score of 500 to 550. However, it will be important to remember that this credit score is also at a critical lower range. Although you may be able to obtain credit, you will pay some of the highest interest rates that are available. While others may be able to buy certain items and pay 3 to 8% interest, you will be paying something in the range of 18 to 29% for the same item. At this point, it will be important for you to obtain your credit report, and find out where the imperfections are and get them taken care of.
• 550-600: As with the 500 to 550 credit score range, at 550 to 600 you will still be at the mercy of creditors with higher interest rates. It will be important for you to find out where the imperfections are on your credit, and get them taken care of as quickly as possible. Although 550 to 600 is a little better, you still have work to do in order to get your credit score at a higher range.
• 600-650: This range is more typical for millions of people. 600 to 650 will not imply that you have perfect credit; however, it does not imply that your credit history should be overlooked when applying for credit from a creditor. Here, you will also discover that there are higher interest rates; however, they will not be as high as anything at a lower range. If your credit score falls within this range, there are probably a couple of minor issues that will need to be taken care of in order to get your credit score at a higher range. Take advantage of the situation and get your credit taken care of because at this range, you should be able to quickly increase your credit score.
• 650-700: With a credit score of 650 to 700, you will more than likely be able to qualify for loans of every different type. Although this isn’t the ultimate range, and you may pay a higher interest rate, you will surely secure a loan. If your credit score falls within this range, you may want to have a look at your credit report and find out if there are any issues you can take care of right away.
• 700-750: If you have a credit score of 700 to 750, you will not have any problem acquiring credit. Quite frankly, this is an area everyone should aim for when it comes to repairing or getting their credit history under control. You will not have any problem obtaining credit for any creditor because you will be considered to be credit worthy.
• 750 and up: If you have a credit score that is 750 and above, you’ll be happy to know that you have superior credit. With a credit score range of 750 and above, you will have a wide variety of options open to you when it comes to applying for credit anywhere and for anything.

The credit score range is based on the FICO rating system. The system bases information on payment history, amount owed, length of credit history, new credit, and types of credit used. If you have made a decision to do something about your credit, it will be important to start by understanding what the information provided above can do, and how it can impact your life. You will be able to quickly remedy problems on your credit history if you take action. This action comes in the form of requesting a credit report on an annual basis. Any imperfections found on your credit report should be taken care of as quickly as possible.

You will find that a majority of the time, many of the imperfections found in your credit report will be faulty entries. These entries can linger on your report for years. If you do not know that they are there, how can they be taken care of? So, it will be important to pay attention to your credit report on an annual basis. This is so you can find areas that can be remedied, so you can enjoy a higher credit score range.