![]() Ultimately, lenders use a credit score range as a broad view of a borrower's credit history. Lenders can then assign appropriate interest rates, fees, and payment terms on your line of credit. Lenders use these credit score ranges as a way to quickly, consistently and objectively evaluate your potential credit risk. ![]() They are then split into ranges, based on how low your credit score is to how high it is. What are the credit score ranges?īoth VantageScore and FICO scores span from a low of 300 to a high of 850. It's important to check your credit reports and stay updated on the factors that the agency took into consideration. Keep in mind that the algorithms for calculating scores change from time to time. The VantageScore or FICO algorithms are then applied to those reports to determine your credit score. These three credit bureaus, Experian™, Equifax ® and TransUnion ®, collect financial information about you, like your payment history, and put them in a credit report. The FICO Score - a score calculated with software from Fair Isaac Corporation (FICO) ® and used in 90% of lending decisions.The VantageScore - a competitor to FICO, created in 2006 by the three main credit bureaus.There are two main credit score calculation models in the US: By the same token, if you have late or missed payments, then your credit score will factor this in, assigning you a number that signals a higher risk of default. If your history is filled with positive behaviors like on-time payments and you've been responsible with assigned credit, then you're less likely to be seen as someone who may default on a credit card or loan. The score takes into account various factors in your financial history and behavior, especially how consistent you've been with payments on credit cards, loans and other bills. Credit scores are three digit numbers assigned to each and every one of us over 18, and are used by lenders to gauge our individual credit worthiness. ![]()
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