Understanding what your credit score is or what a credit score represents has little value without knowing the credit scores range. Knowing where your credit score falls within the credit scores range can provide a better understanding of your creditworthiness.
All credit scoring models come with a range depicting the high point and a low point. The distribution of individual credit scores within the range will change over time but the absolute range or high and low scores attainable will not unless the scoring model is altered.
The current market for credit scores has just two significant scoring models, FICO Scores and VantageScore. Of these two, just one covers an overwhelming majority of all credit scores issued for lending purposes. The most widely used and recognized credit score is the FICO score.
The FICO Score is a model created by Fair Isaac Corporation (FICO). The credit score range for the standard consumer FICO score is 300 to 850. 300 is the absolute low FICO score and 850 is the absolute highest credit score with this model.
The VantageScore range, which is generally accepted as the second most frequently used credit score, has a range of 501 – 990. A VantageScore of 990 is the absolute highest credit score and a VantageScore of 501 is the absolute lowest credit score.
Creditors that review credit scores to make loan and credit decisions including credit card companies, mortgage lenders and banks don’t base their lending decisions solely on the credit score number but rather look at the score as representation of how the potential borrowers credit score stands relative to a range of credit scores. The relative standing with a credit grantor may change over time as the number of applicant’s credit scores change.
Within the FICO score model a credit score of 700 and higher generally indicates an individual wit excellent or a very good credit risk for the lender, bank or other creditor.
A FICO score from 680 to 699 indicates a good to very good credit risk.
A FICO credit score from 620 to 679 is considered to be an average credit risk.
A FICO credit score from 580 to 620 is considered fair credit and displays an above average credit risk for a lender.
A credit score below 580 on the FICO score model is considered an excessive risk or an individual having overall poor credit.
Additional resources regarding credit score facts and figures can be found at:
Average Credit Score
What is a Good Credit Score
Highest Credit Score
300 Credit Score
500 Credit Score
700 Credit Score
800 Credit Score