We have been hearing a lot recently about the credit score, and why a person should know about his or her score, but there’s really not much information on what is the credit score range. It is really very important that you should know about the range because whether your score is good or bad will depend on where you stand within the range.
But First, What Is the Credit Score Range?
The credit score range is a basic principal in the lending market. Whether you are being offered a home, automobile or some other kind of loan, or whether you have credit on your credit card, the lender is going to take a decision on where you stand in the range. There’s an upper and lower limit, and if you are on the upper side, you can hope to get better deals. There are various segments within the range that differentiates people of various creditworthiness based on their past financial transactions and status.
What Is the Credit Score Range – Here’s the Answer
The range is between 300 and 850, and as mentioned above, there are various segments in between.
- 760 to 850 – This is the best score you can have. Your loan will not just be approved, you will get very good interest rates too.
- 700 to 759 – You have a great score. You should face no problems in getting the loan, and that too at very attractive terms.
- 680 to 699 – This is also a good range. There shouldn’t be any problems.
- 620 to 679 – Those who are in this category have an average credit score. The loan might be approved, but the terms may not be that favorable.
- 580 to 619 – You are in the low credit score bracket. Many lenders are likely to disapprove your appeal for a loan. Even if you can find a lender, the terms are surely going to be tough.
- 500 to 579 – This is very poor score. It is extremely unlikely that anyone will forward you the money you need.
- 300 and 499 – What did you do to fall into this category? Very few people are in this list. Did you declare bankruptcy recently?
Always ask what is the credit score range, if you want to take a loan. This will give you an idea whether your loan is going to be approved or not. And if you find that your score is not too good, it might be better to improve the score first before making the application.
