Whats a Good Credit Score? This Chart Will Show You

Whats a Good Credit Score? This Chart Will Show You

When it comes to credit scores, the whole thing can seem mysterious. What goes into your credit score, what hurts your score, and maybe most importantly whats a good credit score are all important questions.

Whats a good credit score
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Whats a Good Credit Score Anyhow?

Before we get into the actual scores, it’s important to know that there are three major credit reporting agencies and two major scoring systems. All three of these agencies use slightly different score ranges, and how they determine their scores are different for each agency as well.

Credit Reporting Agencies

The three major credit reporting agencies are Equifax, Experian, and TransUnion. They have the following credit score ranges. The higher the credit score the better.

Experian 330 – 830
Equifax 300 – 850
TransUnion 300 – 850

Credit Scoring Systems

The two major credit scoring systems are FICO and VantageScore.

FICO and VantageScore scores are used by most lenders to help determine whether or not to approve loans or give credit. Keep in mind, these scores are only one part of the equation as most lenders also use their own custom scores to help make their lending decisions.

These custom scores are secret, so you’ll never know exactly what your credit score is for one specific lender.

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FICO and VantageScore scores fall into these categories:

750 – 850  Exceptional
700 – 479  Good
650 – 699  Fair
550 – 649  Poor
300 – 549  Bad

If you fall in the good or exceptional range you will be able to get good interest rates, with those in the exceptional range getting the very best rates.

Those that fall into the fair range will be able to obtain credit but will pay a little higher interest rate, and those in the poor category will see their interest rates go very high.

For those in the bad category, you might not be able to get any credit and if you do the interest rates will be sky high. You might also have to pay deposits for utilities and cell phones. If you do fall below the exceptional range, you might want to check out the additional resources you’ll find below. While the agencies have different ranges of credit scores, whats a good credit score is pretty much the same for all three.

How FICO and VantageScore Determine Their Scores

When it comes to determining whats a good credit score, these two major scoring agencies go about it a little differently. These differences can mean a difference in your actual credit score number that is used by each of the major credit reporting agencies.

Additional Resources:

myFICO – They give you access to your credit scores, monitor activity from the 3 major reporting agencies, and detect threats to your score, and most importantly restore your identity if it has been stolen.

CreditRepair.com – They offer a credit repair process that has been proven to help people, just like you, to meet your financial goals and repair your credit.

CuraDebt – They offer debt relief and free debt consultation. They’ve been in business since 2000 and have an experienced team that provide you with immediate financial support.

GuidetoLenders – They provide access to a whole group of lenders that offer personal loans at great rates. You just fill out one form and you will get several offers. They offer loans up to $40,000.

OppLoans – The also provide personal loans for lenders with all credit score levels. They have loans up to $10,000.

There are several differences that you should be aware of:

1.Late payments – While a late payment is always going to be a major black mark on your credit score, VantageScore’s sees different types of late payments as more or less meaningful. For example, they will give a larger penalty for a late mortgage payment than for a late credit card payment.

FICO, on the other hand, sees all late payments as equally bad.

2. Collections – If you have a credit card, for example, that has a really low balance that ends up in collections and then you eventually paid it off, FICO will not include it when they are calculating your credit score.

VantageScore ignores all collections that have been paid no matter what the dollar amount is. This is a big advantage for you.

3. Hard inquiries – When you are looking for credit, chances are you apply at more than one place, so you can get the best rates and terms. Every time you do, this causes an inquiry into your credit report. These are called hard inquiries and cause your credit score to drop by a few points.

VantageScore will ignore duplicate inquiries but only if they happen within a two week time period. FICO will ignore these duplicate inquiries for up to 45 days.

There are many large and small things you do and don’t do that can have a major impact on your credit score. So, when it comes to whats a good credit score, if your score isn’t what you’d like it to be, you can work to improve it, and that’s the good news.

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