Credit ranges from excellent to good to bad
Credit score ranges are used to classify people into different slots of good, fair, excellent and poor based on their credit worthiness. There is a point scale of 300 to 850 on which individuals are judged. The higher your score, the better your rating. This in turn means you are more credit worthy.
Though lenders differ in their choice of classifying borrowers, generally a rate of 720 and above is termed excellent. The credit ranges excellent good bad helps lenders to know what is the financial condition of the borrower and how much risk he/she poses. Borrowers with a rating of excellent credit are the favorites of the lenders and will qualify for the best lending options that are available as well as the lowest interest rates. The credit scores in the range of 720 to 750 come under good-to-excellent ratings. People falling in the range of 690-720 are labeled “good” and borrowers who are in the range of 620 and 690 come under the “fair” category. If you have a credit score that is less than 620, it is considered poor.
If you do not fall under a good credit range, there are ways to improve. For starters, ensure that all your payments are made on time. Stay away from late charges, missed payments and anything that might reflect negatively in your credit report. Do not open any new accounts when you are on the verge of applying for a loan as this will negatively affect your score. There are institutions that calculate credit scores and they will tell you your standing in the credit ranges excellent good and bad. The three major agencies that calculate credit scores are: Experian, Equifax, and TransUnion.