The credit score chart is not just another numerical chart. The chart contains numerical scores that are given to individuals based on his credit report information.
The credit score is used by banks or financial institutions to determine a person’s credit worthiness. It gives them a hand on the approval or disapproval credit or loan proposals. The credit score is a factor in determining what interest rates should be applied on a certain proposal.
Having and maintaining a good score will give you better credit terms and limits. This is when a credit score chart comes into the picture. Knowing the score chart will help you to see where you stand and where you need to go.
You have to know that your score is determined by your loan payments, debts, credit history, type of credit accounts and new accounts opened. Making sure these are live score all well maintained will give you a favorable credit score.
The credit score chart used in the United States is the FICO (Fair Isaac Co.). It is software which uses a scale from 300 to 850 to classify a credit applicant. Find your way through the particulars of the credit scores and determine if you have the necessary rating required for your next loan application.
700-850 Excellent. This score means one is qualified for reasonable terms and low interest rates. Being classified as such will make you less of a risk to money lenders.
680-699 Good. This score is still favorable. If you fall under this category you will still receive positive terms and conditions from lenders.
620-679 Fair. This score may still give you credit or loan but not at the interest rate you may be asking for.
550-680 Poor. Having this score may make lenders think twice about issuing approval on your loan proposal. Approval may be given but you have to expect a high interest rate on your loan.
Below 550 Very Poor. This score is too risky for lenders to approve. You may want to check and analyze your credit report for discrepancies or inconsistencies. It is time for a credit report repair.