What is a good credit score?

If you’re looking to check your credit score, you might be wondering what the number itself means. Many different factors come into play when your credit score is calculated, and different providers may have different scores listed for you depending on your credit history.

Generally, anything above 800 is considered to be an excellent credit score, while anything between 670 and 739 is considered to be good. However, there are also a few more credit levels to take into account.

Read on below to find out what a good credit score is considered to be, and more about the different ratings of credit.

What is a good credit score?

There are many different scoring models that are used to calculate credit scores. It is important to remember that everyone’s financial and credit situation is different, which means that there is not a specific credit score number that will guarantee better loan rates and terms.

Generally, most 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. Having a higher credit score usually means that you have been responsible for repayments in the past, which may make potential lenders more confident when assessing a request for credit.

Those with credit scores 670 and up are generally seen by lenders as having acceptable or lower-risk credit. However, different lenders have different criteria when it comes to approving credit. That means that the credit scores some lenders accept may vary.

You may find that your credit score differs between credit bureaus as not all creditors and lenders report to the same ones. Some lenders do report to all three, but you may come across a lender that only reports to one, two or none at all. In addition to this, there are many different scoring models available, and this may affect the credit score that you have received.

What is a bad credit score?

Those with lower scores, generally under 580, may fall into the poor credit category of borrowers and may have difficulty getting approved for credit or qualifying for better loan terms. However, it is possible to improve your credit score over time. By making regular repayments on time, paying your utility bills on time and not applying for credit until you need it, you may see your credit score increase.

Generally, your repayment history information may stay on your report for up to two years. Credit enquiries, payment defaults, court judgements and overdue accounts may stay on your report for up to five years, and serious credit infringements may stay on your report for up to seven years.

It’s important to remember that everyone’s financial situation is different, and your credit score is not the only thing a lender will take into account when deciding whether to approve you for a loan. A lender may take into account your income, expenses and any existing debts when considering your application.

What does a credit report include?

Your credit report typically includes:

Your personal details – These may include your full name, date of birth, length of time at your current address and employment history
Details of credit – Such as loans that you have had in the past
Loans and applications – These could include details of applications in your name for credit or a loan, including the number of times that you have applied

Your repayment history – These may include a history of any credit or loans in your name
Outstanding balance – This could detail any overdue account payments that you have
Legal action – This may include information regarding any bankruptcy or court judgments that you have

All of these factors could be taken into account when working out your credit score.

How we can help

Tiger Finance can help you to find out your credit score. Try our credit score calculator today to find out your numbers. If you’re looking for a loan, we can help to get you funded in four easy steps. You will have a free consultation with one of our specialists, and we will tailor-make you a loan. We will negotiate with lenders on your behalf before you are approved. Call to speak to one of our loan specialists today for your free consultation.