Credit score range is like a series of numbers depicting the position of the person’s credit score. The score of the person is the factor that determines their eligibility to get a loan issued. The credit range is segregated into 5 parts: Excellent, Good, Problem, Poor and No credit.
There are various companies that have devised ways to calculate the borrower’s credit score, out of which the most favored ones used by many companies are FICO, developed by Fair Isaac Corporation, and Vantage Score by Equifax, Experian and Transunion, together in collaboration.
The range of Vantage Score starts from 501 and ends at 990, while FICO ranges from 300 to 850. In both, Vantage and FICO score ranges, higher scores are considered as a safe option for the lenders whereas low scores pose a risk. Following are discussions in brief of FICO credit score ranges:
Excellent Credit Score – 720 to 850
The most important customers of the creditors are considered to be those who have a credit score within this range. They are thought of to be highly responsible with borrowing and repaying. This score means that the borrower has had a good history of credit: no late payments, no penalties etc.
The might also be eligible to apply for the loans with lowest interest rates.
Good Credit Score – 690 to 720
Credit score in this range means that the borrower has had a good history of credit, and is financially responsible; the borrower has paid off credits on time and has had considerably low credit card balances against his limits. This borrower will be considered as a low risk to the lender.
Problem Credit Score – 650 to 690
Credit score of borrowers in this range is considered to be bad credit score as this depicts either non-payment or late payment of past credits, rents etc. These types of credit scores are considered to be of risk to the lenders and hence, loans may be cancelled or not sanctioned.
Poor Credit Score – 350 to 650
This is the poorest credit score and depicts that the borrowers has an unclear credit history from many creditors, and multiple failures to pay credits on time. Such a score may also occur due to bankruptcy. Hence, the borrower has little to low chance of not getting further credit.
No Credit – 0 to 349
This is the score of someone who has newly acquired their accounts. This means that the borrower has had no history of credit whatsoever.
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