Credit Score Ranges

A person’s credit score is an all-important three digit number that gives lenders a vague idea of how safe a person it is to make a loan to him or her. This number can go up or down based on a person’s financial behavior and total amount of debt. A person does not start out with a perfect score but, rather, has to build a good score with good behavior. Once a person has a particular score, the score fits into a number of categories, or ranges, that show how low or high a risk a person is. Credit scores range from 300 (very bad) to 850 (very good).

A score of 500 or less means that a person is unlikely to be able to secure a loan from a traditional bank. The individual would then likely have to rely on other, less regulated sources for a loan.

A score between 500 and 579 is about the equivalent, in school terms, of a D paper. This means that the person has “very poor credit,” with a history of delinquent payments and other negative financial issues in his or her background.

Individuals with a score of between 580 and 619 would earn a C on a paper. This range, known as “poor credit,” is more likely to be approved for a loan. A lender will need to know more detailed background information and give more attention to the file. It is of particular importance for the potential debtor to have good answers for whatever needs to be explained on the report. Some people have a score in this range due to a debt load, as opposed to recent delinquencies.

Scores between 620 and 679 would receive a B paper. This range is known as “fair credit.” A person can have high credit card debt and still receive this range if he or she has never missed a payment.

Scores between 680 and 719 would receive a B+ or an A-. This is the “good credit” range and will receive favorable interest rates.

Scores between 720 and 799 get an A and a rating of “very good credit.” This group gets the best interest rate available and at very competitive cost structures.

Those with a credit score of 800 or more get an A+ and will be worthy of special pricing considerations for the ease that this file will be to process.

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If you have a poor credit score and are considering bankruptcy as a means to get your financial life back on track, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 800-975-5346 to learn more about the best option for your individual circumstances.