Credit is a confusing subject to nearly everyone; the credit rating scale is the main source of this. Scores are figured based on several different aspects. Payment history, the amount of time credit has been established, what type of accounts are used most, new accounts and amounts owed are all contributing factors in a FICO calculation. Where a person's score is in the credit rating scale is a key factor in determining whether or not loans, lines of credit or credit-based services can be obtained. Not all lenders use the same criteria for extending credit. Some may accept lower scores than others will, depending on the nature of the account.
Credit Rating Scale - What You Should Know
Divided into several ranges, the credit rating scale classifies an excellent score as one between 760-849. With such exceptional scores, the lowest possible interest rates will be offered by lenders. Anything between 700-759 is considered to be great. Individuals who have scores in this range will find it easy to get a loan - also with very low rates. A good score is classified as being between 660-699. When a score is in the "good" range, individuals will qualify for a decent loan rate, but not as good as those with excellent ratings. With a score between 620-659, a good interest rate will not be offered. This is considered to be a fair score. This vital range includes the definitive line with the difference between a good interest rate and a bad one.
Poor Credit Rating Scale
Scores ranging from 580-619 are considered to be poor. With a poor number, it is still possible to qualify for a loan. However, the loan will be offered at an extremely high rate. Having a number between 500-579 constitutes a very poor score. High-risk loans can be obtained by individuals with very poor ratings, but the interest rates will be as high as they can legally be. Any score between 300-499 is considered awful. With an awful rating, it is nearly impossible to receive any loans or credit.
