What is your credit score?
Learn about your credit score and what you need to know
571
Poor
A credit score is a numerical representation of your creditworthiness. There are multiple models used to calculate your score with FICO and VantageScore being the most popular. Each scoring model takes the information in your credit report and condenses it into a three-digit number ranging from 300 to 850. The three-digit number is used to predict how likely you are to repay the money you borrow.
Credit scores are widely used by financial institutions as an easy way to assess risk. Your credit score can impact almost every aspect of your life from the interest rate on your credit card to what apartment you can rent. The higher your score, the better your chances of approval for credit cards and loans with the best rates and rewards. It’s important to understand your score and the factors contributing to it so you can make informed decisions on what products to apply for or how best to work on your credit.
Learn more about each credit score range below! 👇
Poor credit score 300-579
Borrowers with poor credit either have a lot of negative information on their credit reports such as charge-offs, collection accounts, and judgments or they lack a credit history. The low score marks them as high-risk making it difficult to get an unsecured credit card or be approved for a loan, but it’s not a financial dead end. There are products designed to raise credit scores. Once a credit score hits 500, it is possible to qualify for loans are cards albeit with higher interest rates and additional fees.Â
Fair credit score 580-669
A fair credit score is below average and remains higher-risk but it is no longer in the bad realm. Consumers have less recent negative marks on their reports and as a result, many more lenders are willing to approve their applications. Borrowers will find that while they have more loan and credit card offers, the interest rates and fees are high while rewards are scarce.
Good credit score 670-739
Consumers with good credit may have a few late payments or higher balances on credit cards but in general, they can be counted on to repay debts as agreed. Borrowers will find many more loan and credit card offers with affordable fees but will still need to improve their scores to access the best rates and most lucrative rewards.Â
Very good credit score 740-799
Scores in this range are well above the national average and indicate low risk. Borrowers with very good credit pay their bills on time, keep their utilization low, and are responsible with credit. Consumers with scores in this range are highly likely to be approved for cards and loans with low interest rates and good repayment terms.Â
Exceptional credit score 800-850
Consumers with top scores have extremely high chances of being approved for credit cards and loans with favorable conditions. The majority of borrowers in this range have never missed a payment, keep their credit utilization low, and have old credit accounts. A credit score of 850 is considered “perfect” but once the score hits very good credit, consumers won’t see much of a difference in terms of interest rates, fees, and rewards.