What Are Credit Score Ranges? Rich Mom Answers

What are Credit Score Ranges? Rich Mom Answers

You perhaps have heard about credit scores. You know that credit scores are important. Consequently, you need to know what the ranges of credit scores are. Knowing what the credit score ranges are will help you understand where your credit score places you, and where you want to be. 

Let’s get to it.

A credit range shows the lowest and highest numerical score within each quality rating. However, there’s more than one source of credit score ranges because there is more than one credit scoring model. I’ll spill the tea on the two main models. 

The two main credit scoring models and their credit score ranges are: VantageScore 3.0 and FICO.

VantageScore 3.0 has four credit score ranges:

300-600 is a poor credit rating

601-660 is a fair credit rating

661-780 is a good credit rating

781 – 850 is an excellent credit rating

FICO has five credit score ranges:

300-579 is a poor credit rating

580-669 is a fair credit rating

670-739 is a good credit rating

740-799 is a very good credit rating

800-850 is an exceptional rating 

WIth both credit scoring models, higher scores are better. Higher scores indicate that you have been successful in paying bills in the past. Therefore, those who review your credit scores, believe that you are a good credit risk and will pay your bills in the future. 

However, something else that makes FICO different from VantageScore 3.0 is that FICO also has industry specific scores. These alternative versions are specialized for specific industries, such as auto loans, credit cards, and mortgages. 

More on the Ranges

Having a credit score below 580, you will likely get you denied for credit, because this is considered a very poor score. A credit score between 580 and 669, will probably be able to get some credit. But, you will generally have a higher interest rate on any credit that is extended to you, and you will be considered subprime. On the other hand, credit scores between 670 and 739, will get better rates, but not the best. If you have a credit rating between 740 and 799, you will get some of the best interest rates, but still not the very best. Congrats if you have a credit score of 800 or above, you will be able to get the very best interest rates. 

So, to get the best credit opportunities, shoot for being in the exceptional range for credit scores of 800 to 850. 

Do you want to know more about what I say about credit scores? Check out some of my other bits of financial literacy.

Wanna learn more? Check out:

What is a credit score?

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Wondering About Rich Mom?

My name is Valerie, aka “Rich Mom.” Rich Mom Answers is a segment of the Rich Mom, Poor Kid blog that gives short answers to my daughter’s personal finance questions, the goal of teaching her the vocabulary of financial literacy.

Specifically, I started sharing these bits of financial information in order to encourage my daughter (aka Poor Kid), because I want her to get better with her finances and know how to create her own wealth.

Although I originally started this blog for my daughter, I decided that I wanted to share them with her friends, and others, like you.

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But, I am not an investment advisor. Always do your own due diligence and research before investing. Check with your own investment advisor. 

Also remember that past performance is not a guarantee of future performance.