Your 3-Digit FICO Credit Score Explained Clearly

Do you know your FICO credit score? Well, you definitely should. Your FICO score is what lenders use to allow or deny you credit when you apply, for example, for a car loan, a bank loan, or mortgage, to name a few. FICO scores range from 300(lowest score) to 850(highest score). Listed below is the what is score range means to you.

FICO Credit Score of 800 or More - Excellent

If your credit score is 800 or above, then lenders and insurers will see you as excellent. You will be viewed as a low credit risk. You most likely have a history of using credit responsibly. Your credit report has different multiple credit and loan accounts that have all been paid on time for a number of years. You DO NOT have any bankruptcy filings or collection accounts, on your report. Your excellent score means you can qualify for the best deals, and lowest interests available.

FICO Credit Score from between 700 to 800 - Very Good

When your credit score is between 750 and 800, then you are considered “very low risk” when it comes to credit. You have been using your credit accounts responsibly. You always pay your accounts on time each month. Your credit score qualifies you for some of the lowest rates available.

FICO Credit Score from 700 to 750 - Good

Your credit score is between 700 and 750, which means that lenders and insurance companies view you as a low credit risk. You may have had late payments in the past, but overall of your accounts are currently paid on time. You also don’t have alot of credit card debt. Your credit score qualifies you for very competitive interest rates and terms, but maybe not the best that a lender has to offer.

FICO Credit Score from 650 to 700 - Fair

So your credit score is between 650 and 700, then you are viewed as a moderate credit risk. You may have older derogatory items on your credit report that are not hurting your score as much as they used to. Your fair credit score could also be the result of higher than normal credit card debt or too many applications for new credit in the past few months.

FICO Credit Score from 600 to 650 - Bad

Your credit score is between 600 and 650. Lenders and insurance companies will view you as being a high risk. Scores below 650 are viewed as “subprime” by many lenders. Your credit score could be lower than average because of high amounts of credit card debt or derogatory items on your credit report, such as late payments, collections, or even bankruptcy. Your credit score makes it difficult to be approved for standard credit products at competitive rates and terms. It’s also possible that you could be denied for credit or insurance.

FICO Credit Score is less than 600 - Terribly Bad

Your credit score is below 600. This means that you are a very high credit risk. Mainstream lenders and insurance companies are not likely to approve your applications. If you are approved, you will charged much higher interest rates or premiums. Credit scores below 600 are usually caused by late payments, collection accounts, or public records appearing on your credit reports. Excessive applications for new credit or high amounts of credit card debt can also lower your score. It will be difficult for you to obtain new credit without the help of a co-signer or a large down payment.

No FICO Credit Score - Still Bad

You DO NOT have any credit score, thus insurers and lenders are unable to accurately predict your credit risk. Because of this inability by insurers and lenders to predict your credit risk, they automatically consider you to be a high risk. Having no credit is better than having very bad credit, however, and you can be approved for new accounts. You probably have not been using credit cards and loans regularly enough for there to be recent information on your credit reports. You may be trying to open your first account, or you simply have not used any type of credit recently. You can establish your credit by opening a new credit card and using it responsibly. After a few months of use, your credit report should be able to be scored.