“Age is just a number” is a saying that’s absolutely true! You can appear and behave like someone older or younger than your chronological age depending on your physical health, outlook on life, and other factors.
Your credit score, however, is a number that’s pretty much cut and dry. It presents a very accurate at-a-glance assessment of your financial health and history of responsible borrowing.
As such, your credit score has a major influence on your financial life, affecting everything from loan approvals to interest rates. It provides lenders, landlords, and even employers with an instant snapshot of your financial reliability.
Understanding the various credit score ranges and their implications can help you make informed financial decisions, set realistic goals, and if necessary, improve your credit the right way with CredEvolv. Let’s explore the different credit score ranges and what each range may mean for your financial opportunities.
Credit Score Ranges
Remember, these ranges are general guidelines. Each individual lender, landlord, and employer can set their own standard for acceptable credit score levels.
Credit scores typically range from 300 to 850, with higher scores indicating better creditworthiness. Here’s a breakdown of the typical ranges:
- Not Great Credit (300-579)
- Okay Credit (580-669)
- Better Credit (670-739)
- Even Better Credit (740-799)
- Outstanding Credit (800-850)
Now, let’s dive deeper into each range to understand what you may and may not be able to do with your credit score.
Not Great Credit (300-579)
A credit score in this range indicates a history of significant credit issues, such as late payments, defaults, bankruptcies, or accounts in collections. This score suggests to lenders and others that you are a high-risk person to do business with.
What you may be able to do:
- Secure a loan with a high interest rate. While it may be possible to obtain a loan, it will almost assuredly come with a very high, prohibitive interest rate. Lenders charge more to compensate for the risk of dealing with someone who has a low credit score.
- Get subprime credit cards. You might be eligible for credit cards designed for individuals with not-so-great credit, but these often come with high fees and low credit limits.
- Improve your credit. Focus on rebuilding your credit by making timely payments, reducing debt, and addressing any negative items on your credit report (pro tip: get help from us instead of a scammy, traditional credit repair company).
What you may not be able to do:
- Qualify for prime loans. Most banks and lenders will be reluctant to offer loans with favorable terms to you if your credit score is in this range.
- Obtain low-interest credit cards: Most rewards and low-interest credit cards will be out of reach for you until you improve your credit score.
- Secure a financially beneficial mortgage. Qualifying for a mortgage will be difficult, and if you do, it will come with a high interest rate and strict terms.
Okay Credit (580-669)
An okay credit score shows some credit issues, but it’s a step up from not great. This range indicates that you are a moderate risk to lenders.
What you may be able to do:
- Get a mortgage or a personal loan. Your chances of qualifying for these types of installment loans increase in this range, but your interest rate will likely be higher than average (this may not be the case for Military veterans; ask your lender for more details).
- Obtain credit cards with better terms. You’ll have access to better credit card options, including some with rewards and lower fees.
- Improve creditworthiness. With consistent, positive credit behavior that you can learn by linking up with a certified credit counselor on the CredEvolv platform, you can move into the better credit range.
What you may not be able to do:
- Access the best loan terms. If you qualify for a loan, the terms won’t be as favorable as those offered to individuals with better or outstanding credit.
- Easily qualify for premium credit cards. Many of the top-tier credit cards will still be unobtainable for you.
Your credit score has a major influence on your financial life, affecting everything from loan approvals to interest rates. It provides lenders, landlords, and even employers with an instant snapshot of your financial reliability.
Better Credit (670-739)
A credit score in this range is an indicator of responsible credit behavior. It suggests that you are a reliable borrower with a history of managing credit well.
What you may be able to do:
- Qualify for most loans. You can secure various loans, including personal loans, auto loans, and mortgages, with relatively favorable terms.
- Access reward credit cards. You’ll be eligible for a range of credit cards offering rewards, cash back, and lower interest rates.
- Rent housing more easily. Landlords are more likely to approve rental applications when you have a better credit score.
- Get lower insurance rates. Some insurance companies use credit scores to determine premiums. A credit score in this range could possibly lower your rates.
What you may not be able to do:
- Obtain the very best interest rates. While you may get good rates, the absolute best rates are typically reserved for those with even better or outstanding credit.
- Access elite credit card offers. Certain exclusive credit cards may still require a higher score than this range.
Even Better Credit (740-799)
An even better credit score in this range reflects a strong credit history with very few or no negative marks. It shows lenders that you are a low-risk borrower.
What you may be able to do:
- Secure loans with great terms. You’ll have access to loans with competitive interest rates and favorable terms.
- Qualify for premium credit cards. Many of the best credit cards, including those with significant rewards and perks, will be available to you.
- Have more negotiating power. With an even better credit score, you may have the leverage to negotiate better interest rates and loan terms.
What you may not be able to do:
- Access the absolute best rates. The very best interest rates and credit offers might still be slightly out of reach unless you ascend to the outstanding credit score range.
Outstanding Credit (800-850)
An outstanding credit score represents the pinnacle of creditworthiness. It indicates a flawless or essentially flawless credit history and positions you as an exceptionally low-risk borrower.
What you may be able to do:
- Access premium loan terms. You’ll qualify for the best interest rates and loan terms available.
- Obtain elite credit cards. The most exclusive credit cards, offering the highest rewards and best benefits, will be accessible to you.
- Receive lower insurance premiums. Insurance companies may offer you the lowest premiums based on your credit score.
- Enjoy maximum financial flexibility. With outstanding credit, you have the freedom to make significant financial decisions with the best possible conditions.
What you may not be able to do:
- Face significant credit limitations. With an outstanding credit score, there are very few (if any) financial products or opportunities that will be off-limits to you.
Conclusion
Understanding general credit score ranges, and where your credit score falls within them, can help you gauge your financial health and identify areas for improvement. Whether your score needs a boost or is already exceptional, there are always steps you can take to enhance or maintain your credit profile.
By practicing good credit habits, you can move up the credit score ladder and unlock better financial opportunities – and we’d love to help you with that! At CredEvolv, we understand that you have your own unique credit fingerprint. Instead of using outdated, one-size-fits-all credit repair solutions that only scratch the surface of what’s possible these days, we combine advanced technology with a personal touch to cover all the nuances of your credit to achieve maximum improvement.
Yes, lifting your credit score into a higher range is a journey that requires patience and diligence. But the benefits of reaching a higher credit range are well worth the effort, and we’re here for you!