Credit Score Range

Credit scoring is a system used by some creditors to determine whether to give you a loan or credit card. The creditor may examine your past credit history to evaluate how promptly you pay your bills and look at other factors as well, such as the amount of your income, whether you own a home, and how many years you have worked at your job. If a creditor considers a factor important you may be awarded points for those factors.

Most credit scoring systems are different and unique because they are based on a creditor's individual experiences with customers. To develop a system, a creditor will weigh each of these factors based on how well each predicts who would be a good credit risk.

Credit scores have a range between 300 and 850:

700 - 850 -- Excellent or Very Good Credit
680 - 699 -- Good Credit
620 - 679 -- Okay or Average Credit
580 - 619 -- Low Credit
500 - 580 -- Poor Credit
300 - 499 -- Bad Credit

Good credit score is used as a future sign of your credit value, and if your number in the “good” credit score range, be sure your rates will be lower than usual. A not so good credit score, on the other hand, could cause you to receive an APR that is a couple of points above the prime rate, which will cost you a lot more money over the long haul. Many people don’t know their credit score, or even what a “good credit score” should be. Make monitoring your FICO credit score and credit report part of your yearly financial routine. If you let your credit get away from you it could take years or mind numbing frustration to get it back into a desirable range.