When talking about credit scores, there always seem to be a lot of confusion. Your credit score is not just one number. There are 3 credit bureaus that each have their own score. Because of that, you actually have 3 different scores. However, all these scores are usually around the same level. No matter which bureau you are looking at, I will show you how to analyze your credit score.
A credit score of 850 is the highest score that you can have. It is rare for people to get to this number so don’t worry if you are not there. In today’s economy, a credit score between 760 to 850 is usually considered an excellent score. By having a credit score in this range, you should have no problem getting low interest rates on loans. Anything above 700 is considered very good credit but if you want the best, you must get into the 760s.
If your credit score is between 600 to 700, you are considered middle of the road. Scores in this range are okay but not great. When you look for a loan, you will have to pay a lot more in interest and you may have some difficulty securing loans. You may have to have a cosigner but you will still be able to find loans. If you fall in this range, taking steps to raise your credit will have a great benefit.
A credit score below 600 is considered bad. This can go down all the way to 300. If you are in this range, you will find it difficult to get loans. A 500 credit score is about the limit to where you may be able to get credit. However, if you are able to, you will find that you will have to pay extremely high interest rates. This is an instance where increasing your credit score first would be highly advised before trying to get a loan. If your credit score falls into the 300 to 400 range, you are in a lot of trouble. These are the bottom and you will probably not be able to get a loan. If your score falls in this range, it is time to really start working on bettering your score.
No matter how bad your credit is, you are always able to improve it. Depending on how low your score is, it may take awhile to get it back up to a good standing. Raising your score will take time a patience. With diligence and monitoring your credit, you can achieve a top credit score.