Your Guide to Good Credit Score Ranges: What is a Good Credit Score

If you’re wondering what’s considered a good credit score, you’ll need to understand how the system works. You’ll also need to know what your credit score numbers mean in comparison to other borrowers. That’s where credit score ranges come into play.

Each of the three credit reporting agencies sets ranges to differentiate between poor, fair, good, very good, and excellent credit scores. Without understanding these credit score ranges you can’t fully comprehend where your credit stands and how much you need to do to it if you want to get the best possible offers.

What is a Credit Score?

Your credit score is a three-digit number lenders use to quickly access your credit worthiness and the likelihood you will pay your bills on time. Credit reporting agencies derive this number from the information in your credit reports.

You can request your free credit reports from all three credit reporting agencies through AnnualCreditReport.com. Why should you do this? Errors on your credit reports can have a negative impact on your credit scores. Once everything’s in order, it’s time to look at your credit scores.

Are Credit Scores Important?

Creditors, lenders, landlords, and sometimes employers can use your credit scores to determine whether you’re a financial risk or a reliable person. If you have poor credit, you may struggle to get a cellphone plan, credit card, or a personal loan.

Conversely, those with higher credit scores are more likely to be approved for credit products. Plus, they may enjoy more favorable credit terms which leads to less interest paid over the life of their loan. That can save them hundreds or thousands of dollars.

How Can You Get Your Credit Scores?

You have many sources for free or paid credit scores. Remember, the U.S. has three major credit reporting agencies, so you should obtain yours from each.

One of the easiest ways to access at least one of your credit scores is through your bank, credit union, or credit card companies. There are also many online free sites that provide this information in exchange for their suggestions for loans and other credit options. For instance, free Equifax and TransUnion credit scores can be accessed through this link.

The three major credit bureaus also provide credit scores directly. Experian provides theirs for free, but Equifax and Transunion provide them as part of a paid credit monitoring service. Other options include nonprofit credit and housing counselors.

How High Can a Credit Score Go?

The maximum for today’s credit scoring models through all three credit reporting agencies is 850 points. Points are awarded based on the information in your credit report.

Factors considered include your repayment history, debt-to-income ratio, the length of your credit history, the types of credit you’ve used, and the number of hard credit inquiries on your report.

Credit Score Ranges

Credit score ranges help you put your financial standing into perspective. Each credit score also helps creditors determine how likely you are to pay back any money you borrow. Naturally, the higher the number the more likely they are to grant you a loan.

Having said that, there is no magic number that guarantees you a personal loan. Equally, there isn’t one that guarantees you’ll be turned down. Many lenders consider multiple factors, not just your credit scores.

Nonetheless, we are providing you with the range the credit reporting agencies tend to use. These may vary slightly based on the companies particular credit scoring model.

Generally, anything over 670 is acceptable to most lenders. Anything over 800 is considered a high credit score. This range is often reserved for those that have demonstrated responsible credit behavior over a long period. These borrowers usually enjoy the best possible credit terms too.

Those with fair credit (scores from 580 to 669) can usually find credit, but they may not qualify for the best loan terms.

Those with credit scores under 579 may struggle to find credit through traditional lenders. However, they may still have many options through alternative lenders. These lenders cater to those that can’t meet the stringent requirements of mainstream creditors.

Consequently, if you’re wondering what is considered a good credit score, you’re probably asking the wrong question. You should wonder where you can find a lender whose products align with your credit.

Are Credit Score Ranges Really That Important?

Credit score ranges are guidelines that help you and creditors understand your financial position. Don’t give up looking for financing, just because you fall into a lower credit score range.

Even if your credit scores aren’t the best, you have options. Plus, your credit scores aren’t fixed numbers. You can improve your credit and get a personal loan that was once beyond your reach.

Additionally, some lenders don’t place as much emphasis on your credit scores so you could qualify, even if you have bad credit.

Why Do Your Credit Scores Differ?

Each of the three credit reporting agencies use their own system to collect data. Furthermore, creditors may report to one, two, three, or none of these agencies. They are not required to submit information to any of them.

Credit scoring models also vary. VantageScore® and FICO® are two of the most popular, but each weighs particular information in your credit reports differently.

Additionally, credit scores can vary since information in your credit reports may be updated on different dates. It’s the same creditor information, it just doesn’t make it into each system simultaneously.

What Credit Score Do You Need to Borrow?

What’s a good credit score? Is 580 a good credit score? What constitutes a good credit score to buy a house? Is 600 is a good credit score? Is 700 a good credit score? What’s a really good credit score?Is 750 a good credit score? Do I need a good credit score to buy a car?

These are common questions many have since they’re worried they might not be able to borrow. As mentioned earlier, this really isn’t the right way to look at the process. Your credit scores don’t instantly determine whether or not you can qualify for credit products.

If you have less than pristine credit, you need to find lenders that consider other factors. Some place more emphasis on a steady income. Alternative lenders may consider non-traditional income sources such as pensions, alimony, child support, Social Security, and more. You just need to find a lender that suits you.

The Best Way to Discover Whether You Can Borrow

If you’ve tried to borrow through traditional lenders and they’ve turned you down, you shouldn’t repeat the process. You don’t meet their stringent requirements and applying again through another mainstream lender probably won’t provide you with different results. In fact, it might lower your credit scores. If your credit scores are already less than perfect, that’s the last thing you need.

Instead, you should pre-qualify for loans online. Unlike the mainstream application process, many online lenders use soft credit enquiries. These don’t impact your credit scores so you can easily see what’s available to you quickly.

Fortunately, this doesn’t mean you must source lenders or fill out multiple application forms. Some companies act as brokers for many lenders. They don’t promote a specific product. They just make it easier for you to find loans that suit your life and your finances. You are under no obligation to accept any of the products they suggest either.

Application Requirements

Lenders need certain information to identify you as a borrower and what you need from a loan. Common information they may ask you for include:

• Personal information such as your Social Security number or Individual Taxpayer Identification Number, name, address, telephone, and email address
• Desired loan amount – online lenders may offer anything from $200 to tens of thousands of dollars
• Loan purpose – the website may ask you how you intend to use your funds so they can align your needs with appropriate products
• Banking details – they need this information to verify your income electronically and to transfer funds into your account quickly

Always ensure that your application information is accurate and complete. The software will automatically suggest loans for your state based on the address you provide.

Try FlexMoney’s Extensive Lender Network

FlexMoney is your best option if you want to discover what personal loans are available to you. It’s fast, simple, and without obligation.

Our huge network of lenders includes a wide variety of reputable lenders across over 25 states offering top-notch online loans. Fill out one application and we will align you with your best possible credit options.

You could qualify for anything from a quick cash loan to a personalized installment loan. Apply today and connect with the best alternative lending platform in the U.S. Our application process does not affect your credit scores.

Lenders offer loans of between $200 and $35,000. Use your loan funds for anything from an unexpected car or home repair to medical bills. It’s undoubtedly the best way to discover what you can borrow, regardless of your credit scores.