The Credit Score Ranges

While we talk about ratings often and you can't really do anything with your finances without it coming into play few people actually know what the numbers mean, and where they fall the credit score range. What do those numbers actually mean to the lender at the bank, or insurance company? While every company sets their own standards for scores we can estimate how they'll react to some ranges of numbers.

Your credit rating affects more than most people realize. A large factor that is often overlooked is that your interest rates will be determined largely by how high your rating is. This will affect your insurance rates, loan rates, among other things. It will also have an impact on whether you are accepted for many things at all, including loans, rental applications, and often now your credit is being checked when you apply for employment. Having a high score can be important for your financial well being.

The first step to getting the number you want is to find out what all these numbers mean and see where you stand.

To begin, the scale goes from 350 to 850, with people on either end very rare. Most people fall between 450 to 750.

When you have a score under 600 you are in a bad place. The closer to 600 the better, but you really are going to want to do your best to bring this up. You will have a hard time getting your applications accepted for most things.

600-650 is still a a very low range. It's still worth giving a good effort filling out applications because as long as you have a strong employment history you will probably be accepted for things, but your interest rates will be unfavorable.

651-680 should always get you acceptance, and your interest rates won't be the worst, but they won't be low, either.

681-720 is a really strong score! Sometimes you'll even be offered the best interest rates offered, although not always. If you pay down the balance on your credit cards and maybe do a few other small things you could probably bring this up, but it's really nothing to be upset about, this is a good place to be!

721 and up is absolutely excellent. Financial companies will be more flexible to your needs than they would be otherwise and will happy to have you a customer. You will be offered the best possible interest rates, which will save you a lot of money.

While it can be hard to sort all of this out, knowing this will help you take control. Hopefully looking at the credit score range has shown you where you stand financially, and given you goals for where you'd like to be.

For more information on what all those numbers mean and acceptable credit scores for mortgages check out the Credit Score Scale.