What is your Credit Score Range?
September 10th, 2009
Have you been wondering where you belong in the credit score range? Do you think you are one of the 11% who scores above 800 or one of the 30 million people in United States with credit scores below 620? Read this article if you want to know your credit score range. This article will discuss the formulas in getting your credit score, the components use to score and the credit score range. At the end of this article, you could have an estimate on what range you belong.
FICO (Fair Isaac Corporation) score is one of the formulas that have been used widely in the United States by the three major reporting agencies. These reporting agencies are Equifax, Experian, and TransUnion. They are responsible for assigning credit scores to consumers based on information found in their credit reports. In 2006, these three agencies introduce a new system to calculate your score and they named it as Vantage Score which was designed to be more understandable to the industry.
The FICA score uses 5 major components in calculating your credit score range. These are paying on time, credit-to-debt ratio, length of your credit history, the mix of credit accounts used and the number of inquiries and newly opened accounts. The Vantage score has the five components also with the addition of the available credit. Paying on time has a weight of 35%. This is the most significant component of your credit score. The more issues you have the lower the score. Credit-to-debt ratio, weighs 30%, is the ratio of what you owe to your credit available. This includes the total amount of your debt by account type (mortgage, installment, revolving, etc. ), the number of accounts on which you are carrying a balance, and the proportion of the credit lines used. The lower the ratio, the better your score will be. Length of your credit history, weighs 15%, which means the number of years you have been using credit and the type of accounts you have. The mix of credit accounts used and the number of inquiries and newly opened accounts both weighs 10%.
Credit Score range for FICO is in the range between 300 and 850 while Vantage score is between 501 and 990. For FICO, 480-559 score is a very bad credit, 560-619 score is a poor credit, 620-674 score is a Sub-Prime credit, 675-699 score is a marginal credit, 700-719 score is a good credit and 720-850 score is the best credit. For Vantage Score, 501-600 score is an F credit, 601-700 is a D credit, 701-800 is a C credit, 801-900 is a B credit and 901-990 is an A credit.
Knowing these components will help you know your credit score range. Now that you know how to compute your score, if your score is an A credit or in a best credit, then you are in the top 11% of the best debtors in the country.
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