Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.

What can cause a credit score to become low?

Credit scores can drop due to a variety of reasons, including late or missed payments, changes to your credit utilization rate, a change in your credit mix, closing older accounts (which may shorten your length of credit history overall), or applying for new credit accounts.

What’s the difference between high and low credit scores?

Using the credit score, a lender evaluates the probability of the borrower repaying debts/loans on time. While a high score increases your chances of getting credit (like a loan or credit card) and that too at attractive interest rates, a lower score can make lenders wary of lending to you.

What does a high FICO score mean for your credit?

FICO scoring models rank-order credit reports on a scale of 300 to 850. If your score falls on the higher end of that range, you have a good credit score. That higher score tells lenders you’re less likely to fall seriously behind on credit obligations. If your score is low, the lender knows that the risk of you paying late is greater.

Why do younger people have lower credit scores?

A young person will typically have a lower credit score than an older one, even when all other factors are the same. Another 15% of your FICO score is based on the length of your credit history, including the amount of time since the various accounts were opened and used.

What are the factors that affect a credit score?

There are many—in fact, hundreds—of credit scores that lenders use to help make lending decisions. Several factors affect those credit scores. But in almost all credit scores, the two factors that affect your credit scores the most are your payment history and credit utilization rate.