 Search the Knowledgebase |
 Browse by Category |
|
|
|
|
|
| What do my credit score numbers mean? |
|
Article Details
Last Updated
9th of October, 2009
|
| User Opinions (24 votes) |
100%
0%
|
|
Thank you for rating this answer.
|
550? 725? 680? What does your credit score mean? In this article, we show you exactly what goes into having good credit, fair credit, and bad credit. See what your credit score tells lenders and what you need to do to improve. This information is based on the most commonly used credit scoring formulas:
Excellent Credit
- Credit score above 800
- Excellent credit risk
- Long credit history
- Multiple established credit and loan accounts
- No negative public records
- Qualifies you for the best deals
Very Good Credit
- Credit score between 750 and 800
- Very low credit risk
- Credit accounts paid on time each month
- Qualifies you for some of the lowest rates
Good Credit
- Credit score between 700 and 750
- Low credit risk
- May have had late payments in the past
- All accounts are currently paid on time
- Standard amount of credit card debt
- Qualifies you for competitive interest rates and terms
Fair Credit
- Credit score between 650 and 700
- Moderate credit risk
- May have older negative public records
- May have higher credit card debt balances
- May have too many applications for new credit
- Qualifies you for decent rates, but not the best available
Bad Credit
- Credit score between 600 and 650
- High credit risk
- May have of high amounts of credit card debt
- May have late payments, collections, or bankruptcy records
- Difficult to be approved for standard credit products
Very Bad Credit
- Credit score below 600
- Very high credit risk
- Late payments, collection accounts, or public records
- Excessive applications for new credit
- Very high amounts of credit card debt
- Very difficult to be approved for new credit without a co-signer or down payment
No Credit
- No credit score
- Considered a high credit risk by lenders
- Have not been using credit cards and loans regularly
- May be trying to open a first credit account
- Better than having very bad credit
- Qualifies you to be approved for accounts tailored to people with no credit or bad credit
Not sure where your credit stands? Check your credit score today!
|
The article has been updated successfully.
