Your credit score ranges are an important asset, and it is vital that you treat them as such. Without careful attention, it is possible for your scores to drop to the point where it would be almost impossible for you to acquire a loan of any sort. Why is this? Almost three-quarters of lenders pay close attention to your credit score when you apply for a loan. More than anything else, these scores affect what sort of loan terms and interest rates that you will be able to obtain, for the scores are the only “you” that a lender will see. Never underestimate the importance of your credit record, for it determines many other important things, such as:

Mortgage types available when you buy a home Down payment amounts Car Loans Insurance premiums Whether or not you will be hired for a job you are seeking

Of course, in order to be able to interpret your credit worthiness score, you have to have a copy of your credit report, which you can get by contacting one of the “big three” credit bureaus. Once you have this report in hand, it’s time to look at your stats and see how you stand.

How High Can A Credit Score Go?

Credit scores can range from a high of 850 to a low of 300. Of course, the higher the score, the more likely you are to get a great interest rate and approval for a loan. With a score of 700 or above, most lenders will see you in a very favorable light, for your credit to be considered in the category of Excellent to Very Good. Depending on how much over 700 your score is, some lenders will offer you even better rates than the 700 and below score crowd receives.

A score of 680 to 699 means that your credit is considered to be Good. You aren’t considered as a credit risk with this score, but you won’t get offered the lowest of interest rates like those with higher scores.

The range of 620 to 679 is considered to be OK. It’s not low enough to get you denied for a loan, but you will definitely not have the best terms.

A score of 580 to 619 is considered to be Low. With this low of a score, you are teetering on the edge. You are almost at the point where you can’t get a loan at all. Loan officers will manage to work with you, but the loan will definitely be more expensive for you in terms of interest. And, you won’t have much of a choice, as if you want the loan, you’ll have to pay the price.

The range of 500 to 580 is considered to be quite low. If you are in need of a loan with a score this low, you will only be able to get a specialized type of secured loan tailored to people with bad credit.

If your credit score ranges between 499 and 300, you really should consider credit counseling or a debt management program. But, take heart – with a little diligence, you can raise your credit rating and improve your credit report.

By: Ann Richter