Credit Score Scale

FICO Score Range

Credit Score Scale

The FICO score range is a very important subject matter that we need to learn. FICO actually stands for Fair Isaac Corporation, the company which invented the FICO score range. Basically, they are responsible for organizing credit the world over.

But, what really can we expect inside the credit score ranges? Basically, the score range actually contains numeric characters from 300 to 850, with 300 as the lowest, and 850 as the highest.

There is really nothing fancy and nothing mathematical or statistical with how these numbers are reached. In other words, the three major credit bureaus which have been tasked to give out these score do not use any complicated mathematical formula in order to determine the kind of score will be given to specific individuals or companies. Basically, these credit bureaus rely on the rich experience of their people in order to do the calculation. Generally, they merely use some factors which may influence your credit rating and your financial life. Still, despite all that, everyone respects the decisions made by the three credit bureaus. What they say, universally, is final.

At any rate, the credit scores are actually divided to three different categories: the good, bad, and fair credit ratings. Of course, more than 40% of the individuals with credit accounts belong to the fair credit score range. In here, your financial life is just average. In other words, you have some debts, but you are able to pay for these debts. However, if you belong to the lower half of the fair FICO score range, then you should start considering changing your spending since you are just a few mistakes away from falling into the bad credit category. And, believe me when I say that you do not want to be here.

Of course, we all want to have good credit scores. Although it might be difficult to reach, it is not really that impossible.

Many things that people do not think about can actually raise their scores. By maintaining low balances on your credit cards, you will get higher credit scores. By regularly verifying the information that is being reported to the credit agencies can also help. You must make sure that all information is accurate and that it is yours. You do not want wring information on your reports, and you really do not want accounts listed that are not even yours. This happens more than you would like to think, so the best way to keep things in order so to review your credit reports every now and then and make sure what you see on them does belong to you. If it does not, then work on getting it corrected by contacting the credit agencies. This is easy to do, but you just have to remember to do it, as it is not fun. Your FICO scores will be higher if you always keep your accounts current and keep your credit card balances low.

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