Your Guide to Comparing Credit Score Ranges
FICO is the most widely used consumer credit score with two main types. Base FICO scores show a lender the likelihood that a consumer will or will not make a payment in the future, whether it’s a student loan, credit card, or mortgage loan. Industry-specific FICO scores are tailored scores for specific types of lenders including credit card issuers, and auto lenders.
What Are The Credit Score Ranges?
- Poor: From 300 to mid-600s
A consumer in this range will find difficulty in obtaining a loan. If your application is approved, you will have a high-interest rate with unsavory terms.
- Fair To Good: From mid-600s to mid-700s
This range increases your chances of getting approved for many types of loans and the ability to shop around. However, you still might not get a loan with ideal terms.
- Very Good And Excellent: Above mid-700s
It’s very unusual for a borrower to get denied for a loan with an excellent credit score. This is the range everyone should strive for as you will earn a low-interest rate and have more choices for repayment terms.
The Same Scores Can Mean Different Outcomes
Different credit-scoring models have different scoring criteria and ranges. Depending on the model the lender uses, the same credit score from your report could mean something different. For example, a FICO score of 660 could put you in the fair range, while a Vantage Score of 660 could bump you up to the good range. Typically a consumer has three credit scores that show up on a credit report. Lenders will use the ‘middle’ score to determine what you qualify for. It’s important you check your credit report regularly to determine what you need to work on and prevent identity theft.