A Credit Rating Scale Breakdown
We all know that your credit score is the most important factor in determining how easy it is for you to get a credit card or loan, as well as what kind of interest rate you’ll receive when you do so. Your credit score can range anywhere from 300 to 850 with the higher the number the better. There are lots of factors that go into determining ones credit score from payment history to the amount of credit you have available for example.
The Credit Rating Scale
A credit score of 750 – 850 is considered excellent. You’ll be able to qualify for the lender’s top programs with the lowest interest rates available. This is a range every person should strive for.
A credit score of 700 – 749 is still considered a very good credit score. You may not receive the absolute lowest interest rates available, but you will have no trouble getting a loan or credit card.
A credit score of 650 – 699 is considered a good credit score. Interest rates will be a little higher in this range and you’ll probably do best to shop around for the best deal.
A credit score of 575 – 649 is considered a poor score. You can expect to be turned down for most promotional deals or offers. If you’re able to get a credit card or loan you can expect the interest rate offered to be very high.
A credit score of 500 – 574 is considered a very poor score. While it may still be possible to receive a line of credit in this range you’re more than likely going to receive extremely high interest rates.
On a credit rating scale any score lower than 500 will disqualify you from loans and credit card offers. This doesn’t mean that you’ll be out of luck forever. There are many ways to slowly build your credit score back up. If you already have a credit card and loans it’s very important you get on a regular payment schedule and are not late on any payment due dates. This is the major factor why people have a poor credit score and one of the easiest ways to build it back up.
The credit rating scale is basically universal among all lenders and is established as a way to protect themselves and their profits against making bad loans. This can be difficult for people just starting out and do not have a credit history. It can also be hard on those that have made mistakes in the past and are honestly looking to reestablish their credit. With time and persistence anyone can fix a bad credit score. It’s important that you take it seriously and are diligent to get back in good standing and enjoy all the benefits a good line of credit can bring you.