Credit Score Scale

Credit Score Rating

Credit Score Scale

Credit Score Rating And How To Understand Yours

Your credit score rating is not that difficult to understand when you realize you only have three scores to worry about.

All a person has to do is take each score from each credit bureau and apply that score to this credit score chart.

What most people do not understand is that not only do you have to have each score from each credit agency, your actual credit reports are more important than the individual credit scores.

Your credit score is just a summary of the information contained within each of your credit reports. Any time you are going to apply for a loan or any other time your credit history is requested, that party is going to carefully look at the information contained in all of your credit reports. It is possible to have high credit scores and have bad information contained in your credit reports.

People that understand the credit score rating system can actually manipulate your credit scores to get them higher than they probably should be. For example, I know how to effectively work with someone's lines of credit so that their credit scores can be high even with a bankruptcy on their credit report. People with a bankruptcy only four years old can obtain credit scores over 700. Therefore, when you think that having a credit score of 700 is a lofty goal, this should put it into perspective that scores alone did not dictate your credit rating. Credit score ratings are much more than looking at a few numbers and if you do not understand this, you will be sadly disappointed when you apply for credit.

The easiest way to understand how to have good credit scores on the credit score scale as well as have good information in your credit reports is simply to read a consolidated credit report. A consolidated credit report is a report that includes information from all three major credit bureaus so that you can see everything that is included in your entire credit profile. If you want to be approved for loans and you want to be proud of what is displayed in your credit profile, you will review all of this information and make sure it is accurate.

Mistakes are very common on credit reports. Just recently and applying for a credit card, my application was delayed because a mistake on one address reporting on one credit agency. Even though personal information such as your address or your employment does not affect your credit score, it does affect your ability to obtain loans and can raise questions when you submit loan applications.

The credit score rating of any individual is the number that many people associate with your entire credit profile. Whether that impression is a good one is completely dependent on the score that particular person holds. There are several levels in the credit score that can change instantly with only one transaction. What does the credit rating mean? Although some numbers are just numbers, the credit score is your life.

Credit Score Rating Scale


Excellent- An excellent credit rating is as good as it gets where a credit rating is concerned. If you have an excellent credit score rating, you can usually obtain any loan that you desire.


Fair- A fair credit score can be a little iffy when attempting to obtain a loan. Creditors might consider you a slightly high risk, but you will still likely get good loans with good interest rates. You will not have the freedom to obtain any loan you choose though.


Poor- A poor credit rating will send up a few warning signs to creditors who are considering you for a loan. You will have a difficult time finding the loan that you want. The interest rates will almost always be high for you, but it is still possible to get a loan. Non-traditional loans will be your best bet.


Extremely Poor- Extremely poor credit generally means that you will not be able to get a traditional bank loan. Lenders will not consider you as a serious borrower who will pay back the money. Although there are ways to get loans, they are less desirable and have very high interest rates.


Credit ratings are an accumulation of your entire credit profile and are much more than simply credit scores. Take good care of all your financial dealings and verify your information on your reports in order to realize the best possible outcome when applying for loans. If you have a bad credit rating, work on getting it cleared up so you can realize the dreams that you have.

Correcting information contained on a credit report is relatively easy. Instructions on how to correct any errors are included when you request copies of your credit reports in the form of a consolidated three in one report. Any offer you see that offers free credit reports and free credit scores will provide you with information on how to correct your credit reports.

Now that you understand that your credit score rating is only one part of your credit profile, you know that you need to review your entire credit history at least a few times each year to maintain an accurate credit profile. You may decide to join a service that monitors your scores, or you can mark your schedule and make sure you access this information free every few months.

If you would like to improve how you look on a credit score scale, then constant attention to your reports is necessary. This mean both while you are raising your scores and also to maintain high scores. It is not exciting, but it will pay off for you the next time someone asks to verify your credit.







Share to Facebook Share to Twitter Stumble It More...