07 Mar What are the Different Credit Score Meanings?

If you’ve ever heard of credit, you probably know of something called a credit score. But what is a credit score, and what are its meanings? This post acts as a crash course in everything credit scores, explaining what the different scores mean and how they impact your life. Read on to get your credit score questions answered!

What are the different credit scores and their meanings?

First off, what exactly is a credit score?

A credit score is a number that tells lenders whether they should loan you money. The higher your score, the more likely lenders are to give you money. It also makes sense that the lower your score, the less likely lenders are to loan you funds. Also, the higher your credit score, the better interest rates you’ll get– like 12% instead of 27%, for instance.

Credit score meanings

These are the different score meanings.

Poor (Below 580)

Credit scores start at 300. So, if you have a score below 580, it indicates that you’re not good at managing loans and paying them back. People with scores in this range are not likely to get lent money or at the very least not be granted favourable loan terms. They’ll likely receive high-interest and limited loan options.

Fair (580 – 669)

This is an average credit score. Individuals in this range will probably qualify for loans while still facing higher interest rates and stricter lending requirements.

Good (670 – 739)

A score between 670-739 indicates that you’re responsible financially. If you have a score like this, you’ll probably receive competitive loan rates, but still not receive the absolute best terms.

Very Good (740 – 799)

If you have a very good credit score,  you likely have a great loan history. Lenders will probably trust you more than they would the average consumer. Expect favourable loan terms and competitive interest rates.

Exceptional (800 – 850)

Well done! This is the absolute top of the credit score range. You’ll get the best loan rates and interest rates.

Now that you know what the different credit score meanings are, you can fix your credit if it’s not good. Contact Credit Boost today for help upping your credit score!