How to Read a Credit Score Chart

Know your credit score but don’t know what it means? Do you have good credit or bad credit? Scores vary from person to person. Sometimes minor score changes will not affect the interest or products offered to you. What are the various scores? Where do you place on the credit score chart?

700-850 Score

Anything in this score range will qualify for most any product. You may still have some score blemishes when you have a score this high. If you are regularly using credit, you score will probably place in the 700 range. The 800-850 range is usually occupied by people who haven’t borrowed money in a while, but previously did, like retired people.

650-700

A lot of people will be in this range of credit. You will qualify for most things, and you will still be considered to have good credit. There will start to be a bit more weight placed on your payment history at this point, so how you’ve paid your bills will be important and not that you’re not in the highest spot on the credit score chart.

600-650

This is average credit. Companies offering credit will take into consideration your payment history and some products may even require a strong co-borrower. It is also at this point that you will be incurring higher interest. It is important to consider that you are right underneath having strong credit, so a couple small tricks will really affect the amount of interest you have to pay.

Below 600

This is poor credit. The higher you are in this range, the easier it will be to fix. For example a score in the 500s in going to take only 6 Months to a Year to bring into an acceptable fico score. You may still qualify for some loans, but always at a higher interest rate as your score is low and a lender will perceive higher risk. A score in the 300s is rare, and should only apply to foreclosures or multiple collections. This will probably take some time to improve.

Remember, no matter where you are on the credit score chart your score can always be improved and brought to a place where you can have success acquiring the most favorable loans and products that are available on the market today. Time heals all wounds and even the weakest credit score can be turned into a positive one.