What is Your Credit Score?

  • the FICO score is a mathematical calculation the measures your capacity to repay a loan
  • measurements are base upon a number of factors that include:
    • your current outstanding debt
    • places and the number of times you have applied for credit
    • the kind of credit you have taken out in the past
    • late payments in 30 - 90 day increments
    • over extension of your credit lines
    • etc,
  • lenders often use the FICO score when reviewing an applicant’s request for creditan applicant with a high FICO score will likely receive instant approval with better than normal rates and terms which means lower cost when you borrow money

Score: 700 and up
About 60% of the U.S. population falls within this credit range. Considered very good credit, Certain lenders offer better rates and/or discounts if you are over 720, 740, etc. Pity, their greedy loan officers might never share them with you.
Score: 600 to 700

score from 659 to 700 means Good. Pretty much you can get a normal loan. Sometimes the minimum for "good credit" is bumped up to 620, because this is generally considered the cutoff point for a prime rate loan.

score from 620 to 658 to is OK. You won’t be denied but the terms are not going to be too generous. Still you are officially a nice person. but If you have a score below 600 you are generalized as someone with having credit problems and probably have open credit problems that need to be addressed.

  • Scores within this group will have access to good interest rates, but may not qualify for the very best interest rates and terms.
  • About 27% of the U.S. population falls within this credit range.

score from 599 to 501 . Banks, brokers love you. Want to know why? That is where bad credit starts. But it is not that bad yet. They are still able to get you a loan but on their terms. Fat commissions for them, much more expensive loan for you. About 12% of the U.S. population falls within this credit range.

FICO score from 500 to 580 is considered to be awful credit . Your credit is bad, period. About 1% of the U.S. population falls within this credit range.