FICO, as with other credit scoring companies, uses a credit scoring model, which determines your credit score. The FICO model is THE market dominator and there’s really no question about it. The most popular version of FICO ranges from 300-850, each number indicating your likelihood as a responsible borrower.
Today, we’re going to dive into the different scoring ranges and what they mean for you as a borrower.
760-850 – Exceptional Credit
A score in this range means that you are an exceptional borrower with exceptional credit usage behavior. Someone in this range likely has very low balances on their various credit card accounts, a long history of making payments on time, and credit utilization ratios that are about 10% or lower.
If you are a consumer in this range, you can qualify for much lower rates on mortgages, lines of credit, credit cards, and personal loans.
720-759 – Very Good Credit
If you have a score between 720 and 759, then you have very good credit. A borrower in this range generally has good financial responsibility and knows how to manage their money. Within this range lies borrowers that have few derogatory marks, a good history of making payments on time, and low credit utilization ratios. You’re likely to get approved for all loans within this range as long as your cash flow works for the loan/product.
670-719 – Good Credit
A FICO score that falls between 670 and 719 is considered a good score. In fact, the national average credit score falls within this range. If you have a score in this range, it likely indicates that you paid your past bills on time and you have been responsible as a borrower.
Within this range, you’ll likely qualify for average rates, though you may not get approved for everything.
580-669 – Fair Credit
If you have a credit score within this range, you are below the national average. You most likely have derogatory marks on your credit report if your FICO score reads between 580 and 669, meaning you have high credit usage or have missed payments in the past. You will probably not qualify for certain lines of credit, including credit cards or loans.
Many lenders won’t extend credit lines to you, though if they do, you will probably get a high interest rate along with it.
300-579 – Poor Credit
This low range is the lowest in the credit scoring model and is generally considered very poor credit. If you have a FICO score within this range, you are seen as a high-risk borrower and will likely not get approved for loans, mortgages, or lines of credit.
Building Credit Responsibly
If you’re looking to boost your credit score with a very popular method, we recommend using authorized user tradelines.
Here at Personal Tradelines, we’re all about making sure our customers are confident throughout the tradeline buying process. We’re here to provide all of the necessary knowledge so that you can find the tradeline that fits your situation best.
Make sure to get in contact with us when you are ready to take the first step towards great credit!