Credit Score Range
Credit scores range a good deal based on your
credit standing. Here's what you should know
when it comes to your credit score range.
Your credit score is a three-digit number that represents your creditworthiness at a given point in time.
Your credit score is based on information in your credit report the day your credit score was generated.
Since credit report information can change from one day to the next, your credit score can change, too.
Multiple Credit Scores
You don’t have just one credit score. Instead you have several different credit scores from multiple
companies who’ve created credit scoring calculations. Each of the credit bureaus – Equifax, Experian,
and TransUnion – has their own credit scoring method. Then, the credit bureaus came together and
created the VantageScore. The most popular and most-widely used credit score is the FICO score.
Banks and other business may have credit scoring calculations, but these generally aren’t available for
What is the Credit Score Range?
No matter which credit score you use, the score you get is going to fall within a certain range. This credit
score range represents the highest and lowest possible credit scores you can receive. Most people fall
in the middle of the range and very few people are at the absolute high and absolute low ends of the
credit score range. These are the ranges of the most commonly used credit scores:
BEACON and the TransUnion TransRisk score.
- FICO credit score ranges from 300 to 850. The same scale applies to both the Equifax
- Experian PLUS Score ranges from 330 to 830.
- The range for VantageScore, is 501 to 990.
What Is a Good Credit Score?
In each case, higher credit scores are better than lower
credit scores. Low credit scores indicate a higher credit
risk. For example, if you have a FICO credit score below
620, it’s a sign that you’ve had serious delinquencies,
high credit limits, too many credit inquiries, and other
serious credit blunders. Lenders will be less willing to
lend to you if you have a low credit score.
A good credit score range on the other hand is generally
above 720. People with high credit scores are the most
desirable borrowers because they have a greater
likelihood of repaying their bills. Consumers with high
credit scores have likely paid their bills on time,
borrowed only what they can afford to repay, and kept
their credit card applications to a minimum.
According to FICO, the company who developed the FICO score, most people (58%) have a credit
score above 700. Only 15% of the population has a credit score below 600.
How to Gain and Lose Credit Score Points
Your credit score can move up and down within the credit score range as you continue to spend money
and pay (or not pay) your bills. Your credit score can move up when you:
- Pay your bills on time
- Keep accounts from going to a collection agency
- Charge only 10% to 20% of your credit limit
- Pay your loans down
- Use different types of credit including credit cards and loans
- Leave old credit accounts open
- Apply for new credit cards sparingly
On the other hand, you can cause your credit score to drop if you misuse credit by:
- Missing credit card payments
- Allowing accounts to be charged off
- Letting accounts go to collections
- Maxing out your credit card balances
- Paying your loans off slowly
- Having only credit cards or only loans
- Closing credit cards that still have a balance
- Disputing old accounts from your credit report
- Applying for several credit cards or loans within a short period of time.
Your credit score plays an important part in your life. So it’s important to focus on the good payment
habits that build a positive credit score.
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