"Credit Score" is basically a numeric figure which can evaluate or express your accurate financial state at a particular time . Several formulas are there to calculate one's credit score. For example, there are Vantage score, FICO score, Plus Score and "FICO Expansion score". But the most popular and standard means to determine somebody's credit score is- "the formulae of Fair Isaac Corporation".
While calculating one's credit score, his recent as well as his past monetary transactions(like- credit card payment record, loan, car lease etc) come into consideration. A person who pays all his bill on time, he will definitely be having a good credit score.
One very common question may come now and that is "what is a good credit score range?" You can go through the below given ranges:
* 800 and more: This is an excellent credit score range and in this scenario, any lender will happily approve your loan application. A good credit history and financial discipline is required to achieve this range.
* 700 to 799: This is a very good credit score range. It is not very hard to get the range. 27% United States population belongs to this credit score range. Unsecured or secured- both types of loan are easily available for the people having this range.
* 680 to 699: It is a good credit score range. Loans can be approved by the financial organizations, but the interest rate may be a little bit higher.
* 580 to 619: This is not a good credit score range rather it is a poor score. You can avail only unsecured loan and mortgage with several terms & conditions. Interest rates will be generally quite higher. People having the score, must pay attention to proper personal finance management and budgeting.
* 500 to 579: It is a bad credit score.
* 499 to Lower: It is a very bad credit score. Professional help is required in this case.
A table is given below showing different credit score ranges and % of the population coming under respective credit score ranges.
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