Credit score chart

The credit score chart ranges from 300-850 with 300 being the lowest score anyone can have. At the same time, 850 is the highest score a person can have.

This credit score range has many smaller ranges that rate credit scores from very poor to excellent.

A combination of these ranges makes up the credit score chart. You will evaluate your credit score based on where your credit score stands on the chart.

Credit reporting companies have different ranges and use different metrics to determine these ranges.

In this article, we will explore the credit score chart and help you understand what each range means. We will use credit ranges that Experian uses in its credit score reporting.

1. Exceptional Credit Score (800-850)

The excellent credit score range is the highest credit score range possible. It means that you are among the top borrowers on the market.

This range demonstrates that you use debt wisely. That is, you pay all your bills on time, use your credit cards with caution, and focus on building your credit score. It could also indicate that you did not have any foreclosure or bankruptcies in recent times.

In general, you excel on factors that affect credit score. Learn more about factors that can affect your credit score.

With this score, you can be qualified for almost every loan possible. Keep in mind that there are other factors that apply when determining your qualification on loans.

You will also get the best interest rate on your mortgage or loan from your lender.

2. Very good Credit Score (740-799)

A very good credit score means that you are a responsible borrower and you treat debt with care. You pay your bills on time and have no outstanding balances on your report. You also avoid anything that can jeopardize your financial report.

Moneylenders will be optimistic about you, and therefore, trust you with their money. As a result, they will give you a loan with the second-best interest rate.

3. Good Credit Score (670-739)

This range means that you are an OK borrower. However, you are not perfect when it comes to credit limit use, paying on time, derogatory marks, har inquiries, etc.

You will be qualified for many loans with this credit score range. However, you will pay more interest on the loan. For example, you can qualify for a conventional mortgage with this credit score.

A good credit score range is not good enough to give you the best interest rate. Lenders believe you can take care of your finances most of the time. However, there is a chance that you can step off the ladder and fail to pay them back.

This is why they will charge you more on the loan.

4. Fair Credit Score (580-669)

A fair credit score means that your financial situations are not looking good. There are many things that can wreck your credit score. For example, a bankruptcy or foreclosure will damage your score.

In addition, if you fail to pay on time or overuse your credit cards, your score will be wrecked.

Moneylenders will need to understand your financial situations before they accept your application.

With this range, it will be difficult for you to qualify for credit.

The good news is that there are some types of loans you can be qualified for with this credit score. For example, you can qualify for an FHA loan with a credit score in this range or lower.

5. Very Poor Credit Score (300-579)

A very poor credit score means that you have violated almost every factor that affects a credit score. You do not pay off your bills on time, you overused your credit cards, have hard inquiries, and derogatory market, etc.

Related article: Factors on which credit scores are based on.

People who are having financial difficulties belong in this range.

It will be difficult for you to qualify for credit. On rare occasions, if you get a loan; you will pay the highest interest rate possible in the market.

The lender will know that there are high chances you will not the loan back.

For this reason, they will charges you more as a way to encourage you to pay on time but also collect some money back from you ahead of time; in case you fail to pay them back.