The Range of Credit Scores: From Excellent to Poor

The Range of Credit Scores: From Excellent to Poor

We talk a lot about “good credit” and “bad credit” but what are the actual tiers that would separate good, fair, bad credit scores?

Often, lenders might categorize scores differently.  For instance, a top tier score for a specific mortgage program might be 760 or higher and perhaps for other loans you might need a 780 score to qualify for top tier rates.  When you are applying for any loan, it’s smart to ask what the top tier is for that particular loan.  In general however, here is how Experian categorizes credit scores:

Exceptional:  800+

Very Good:  740-799

Good:  670-739

Fair:  580-669

Poor:  300-579

A few things to note…

There are different scoring models.  Your scores will typically vary depending on the model used.  For instance, car dealers and mortgage lenders do not use the same model and will almost always generate different scores.  So you could be “Very Good” with one lender/loan and just “Good” with a different lender/loan.

“Good” is often times “not good enough”.   A 680 score, for instance, might be good enough to qualify for an FHA home loan, but it definitely won’t get you the best rates and terms on other types of home loans.  That same 680 score could get you denied for other types of loans and would definitely result in higher interest rates on car loans.

You can go down fast, but going up can take years.  It only takes one or two negative items on your credit report to knock you down a tier or two.  But, it takes years of using credit responsibly and properly for your scores to go up a tier or two.  This is why our program is so valuable.  We commonly have clients that jump up 2+ tiers after just a few months of credit repair.

The smartest thing you can do is… get yourself into the top tier (as fast as you can) and then work to stay there.  The time to worry about your credit is BEFORE you need to use it.  Don’t wait until you want to buy a car or buy/rent a house to find out that your scores are less than perfect.  That’s a stressful and often an expensive situation.

Give us a call if you have questions or would like to learn more about the credit repair process.  We’re happy to help!