What is a good or bad credit score?
In general, a score of 720 or above is considered a very good credit score. However, there is no single "cutoff" score used by all companies, and there are many additional factors besides your credit score that companies use to determine your credit risk and corresponding interest rate or down payment.

 

About Your Credit Score
Your credit score is calculated based on the information in your credit report. Credit scores allow lenders to quickly make on-the-spot credit decisions based on a 3-digit number that sums up your credit worthiness. There are many credit scoring models in use today; all are designed to rate your likelihood to repay your debts. When you order your free credit score online, you will also receive an analysis of the factors affecting your score.
Your credit report is a snapshot of your credit at a particular moment in time. However, in reality that information is flowing in and out of your credit report all the time. Credit applications, home and auto loans, payments, an address change or even an inquiry from a prospective creditor all show up on your credit report – and affect your credit score.
Credit history is the main determining factor of credit nowadays, but there are potential problems that can work against consumers. Since some credit reports can contain inaccuracies serious enough to cause consumers to be denied credit, a loan or even a job, keeping abreast of changes to your credit file is vitally important.
Identity theft is also on the rise, now being the number one consumer complaint reported to the Federal Trade Commission. One of the first places identity theft shows up is often on your credit report. Monitoring your credit is one of the easiest and most effective ways of protecting your credit against errors and fraud.

 

What is a good or bad credit score?
In general, a score of 720 or above is considered a very good credit score. However, there is no single "cutoff" score used by all companies, and there are many additional factors besides your credit score that companies use to determine your credit risk and corresponding interest rate or down payment.

 

Credit Score                          Result to you

720 and up:            People with scores of 720 or higher will have a good chance of obtaining loans at the best interest rates. These loans may require less documentation and paperwork, and potentially less or no down payment or collateral.

680-720                   The average person has credit scores in this range and will usually not be able to negotiate the best terms.

620-680                   Persons with these credit scores will usually fall under “standard” company rules and have less flexibility in choosing the better loans or services.

580-620                   These people will be reviewed by companies with a critical eye and will need compensating factors to be approved for most loans or services.

Under 580               A person whose credit score is in this range will typically be required to provide a substantial down payment/collateral and/or pay a higher interest rate.

 

Background
Your credit scores are based on the information in your credit bureau reports. Although there are a number of different credit scoring models with different ranges of scores, in general higher scores are better, because they increase your chances of getting the loans you want.

Credit Analysis
Both negative and positive factors influence your credit score. The most important factors of each are listed below, in their order of importance. Remember, these factors vary in how strongly they impact your credit score. For example, if you have a very high credit score, the negative factors in your analysis are likely to have a small impact. The same is true for positive factors if you have a very low credit score. Additional details are provided for some factors to help you better understand how they relate to your credit accounts.