Your credit score range falls within a scale that makes it comparable to the credit scores of other borrowers. But what is that range? While no one seems to have an exact idea of what the range is based on, most estimates place the range of credit scores between 300 and 850. Theoretically, you could have a score above 850, but it’s highly unlikely. In fact, most three-digit credit scores actually fall somewhere between 500 and 850.
Credit Score Tiers
A score between 800-900 would generally mean that you have spotless credit. Only about 13% of the general population have scores in this range. While it’s never bad to be perfect, this score would not substantially make a difference in your interest rate in most cases, in comparison to someone who had a score between 720-799.
720-799, the next tier down, would be considered “great” credit and would typically qualify you for the best interest rates and approval rates that the bank has to offer. If you have a credit score in this range, you are in great shape, and considered an excellent credit risk. About 27% of the population has a credit score in this range.
A credit score between 680–719 is considered “good” credit. You might not get the top rates offered to the “excellent” borrower, and you may not qualify for certain types of financing, such as an A-paper mortgage loan. But you will get a competitive rate and you won’t be turned away at the bank.
Between 620-679 is considered an “ok” or “average” credit score. While scores in this range are not uncommon, you may have a difficult time securing the best loans if you find yourself in this range.
580-619 credit score is where “ok” turns to “bad.” A score in this range means that there are definitely some black marks on your credit report – perhaps an unpaid collection or a history of late payments. As a result, you are going to find it difficult to get a loan or a credit card. You might want to take steps to improve your score at this level.
Fixing a Bad Credit Score
If you have a credit score between 500-579, then “bad” has turned to “ugly” and your chances of getting a loan or credit card are virtually non-existent. A score this low generally denotes a major problem in your credit history such as a foreclosure, bankruptcy, mortgage lates, or charge-off. If you find yourself in this position, you should consider consulting a professional and take immediate steps to improve your credit profile.