Your credit score will be a three-digit number. This number indicates if you are a trustworthy person to lend money to. If you have ever looked at your score and are unsure what that number means, you are not alone. A credit score ranges from 300 to 850. The closer you are to 850, the better your credit is. Conversely, if you are below 579, you have a lower credit score. Your credit score impacts your approval odds on new loans as well as the interest rate you will receive.
If your credit score is between 300 and 579, you have a “poor” credit score. With “poor” credit, you will not be able to take out many types of loans, and if you are approved, you will have a much higher interest rate.
If your credit score is between 580 and 669, you have a “fair” credit score. With a “fair” credit, you may be approved for more types of credit, but not as many as someone with a higher score. However, if you do get approved, your interest rate will be high.
If your credit score is between 670 and 739, you have a “good” credit score. With “good” credit, you will be approved for most types of loans. However, you may have a middle-of-the-road interest rate. While it is not the highest, it is not the lowest either.
If your credit score is between 740 and 799, you have a “very good” credit score. With “very good” credit, you will be approved for most types of loans you allow for and have lower interest rates.
Finally, if your credit score is between 800 and 850, you have an “excellent” credit score. This range is the highest your score can be, and this does take effort to get to this range. You will have the highest approval odds with this score and the lowest interest rates because you are a trustworthy borrower.