Credit Scores
Credit scores are an easy way for banks to determine whether to loan or not loan money to a given individual. Once a credit report and credit score are obtained, banks and lenders compare a report to other consumers with similar profiles to estimate how likely the candidate will pay off loans in a timely manner. In addition to the loan itself, a credit score will raise or lower interest rates based on your creditworthiness.
What are the ranges of credit scores and what does each mean?
Credit scores range between 300 and 850. Average credit scores range between the 600s and 700s.
| Credit Score | Credit Rating |
|---|
| 730 and above | Excellent |
| 700-730 | Good |
| 670-699 | Average |
| 580-670 | Fair |
Who can access my credit score?
Credit scores are typically used to determine whether or not an individual is credit-worthy. Though each case varies, a low score suggests the individual may not be a responsible borrower. Likewise, a high credit score implies the individual has consistently demonstrated accountability.
The following are individuals or companies that typically access your credit score:
- Landlords
- Merchants
- Employers
- Insurance Companies