Credit Score Ranges...?

Question

what are the different credit score ranges for each risk level?
i know it goes up to like 800, but what are the ranges for low risk, medium risk, medium-high risk, and high risk?

Answer 1

Credit score ranges are rather straight-forward and applies to most lending programs. The higher the score, the better your credit rating-and the higher your credit worthiness. The scale runs from 300 on the low end to 850 on the high end with the median score in the U.S. falling right around 720.

Part of the mystery behind credit scores is that there is no one particular scale for determining whether or not a credit score is "good." However many financial experts agree that there are some basic guidelines. Generally speaking, credit scores of 800 and above are nearly perfect and most scores of 720 or higher will garner the best mortgage rates and lending options. Credit scores between 750 and 800 are considered to be excellent; credit scores from 720 and 750 are good to excellent; those ranging from 690 to 720 are considered good; and borrowers with credit scores ranging from 620 and 690 are fair credit risks. A credit score below 620 is considered poor.

Answer 2

Supposedly the scoring range goes up to 850, but only a tiny percentage of the population is at or over 800. Fair Isaac Corporation, which made the scoring models that create "FICO" scores, claims the average U.S. score is 723 (see their web site) but some of the bureaus maintain it is much lower. Since it's to credit bureaus advantage to make people uneasy about their scores (so they will pay for information concerning their scores), it's hard to tell where the average is as the government does not track those stats. This much IS known: credit under 700 is not prime, although you can get a loan at okay rates until you hit about 670. Higher scores are the best risks. This is a rough guide to the ranges and the respective risk they are believed to carry:

750-850 Very low risk
700-749 Low risk
650-699 Medium risk
600-650 Medium-high risk
550-600 High Risk
Below 550 Very High Risk

Nearly 30% of U.S. credit holders fall into the 750-799 bracket.

FYI, The term FICO is shorthand for Fair Isaac and is used pretty much interchangeably to mean your scores at Experian, Equifax and TransUnion. However the bureaus have different names for their scores, including Beacon and Empirica.

Answer 3

300-400 High Risk
400-540 Medium High Risk
540-650 Medium Risk
650-800 Low Risk
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Bare in mind that Different Creditors analyze different aspects of your credit to determine elegibility for credit.
Mortgage companies take a different approach than Credit Card Providers.
Auto Loans also have a different criteria.

Age is a factor. (Under 24 Risky)
If you're married or divorced is a factor. (Divorced Risky)
How long you've been paying a specific creditor is a factor. (more than 5 years a PLUS)
How long you've lived at your residence is a factor. (Less than 1 year Risky)
How long at your present employ (Less than 1 year Risky)

and more...

Answer 4

Anything below 630 typically won't get financed for a tricycle from K-mart. If they do, it's at a much higher interest rate and is definitly considered High Risk.

630-700, if their debt to income ratio is decent and they aren't spread too thin, you can usually get a loan with colateral (which is usually whatever you're buying)

700-850 is considered pretty darn good.

Answer 5

the average american credit score is 675.
below 600 is considered bad.

i have been working on my credit .
mine is 684 which is upper fair.lo
700 790 excellent
800 is really hard to obtain but possible
Lots fo resourses out there be careful!
collections late payments really ding you
David Ramsey really exxplains it where i can understand it and gives good advice.
I am getting out of debt .
God bless