About Good Credit Rating Scores

When explaining what a good credit rating score is, it can be difficult to give exact answers simply as there is no single definition of each score. This is because different lenders and credit bureaus use different credit ratings and scales to determine someone’s risk. Additionally the information behind their ratings are never made public.

However it is possible to get a good idea of how credit worthy someone is as there are simple guidelines to each of the credit bureaus credit scales.

When taking the FICO scale into consideration, the scale ranges from 300 to 850. This is also a popular range for many of the other main credit organisations. The highest risk applicant falls near the 300 mark, while the lowest risk has the highest number nearer to 850. This does not necessarily mean that a person with a ‘perfect’ score of 850 will obtain all of the credit they may require, or that a person with a 300 score will be declined all credit. Relatively speaking a person with a lower score may be awarded with products that have high fees, charges, interest rates an unfavourable terms, compared to a high scoring client who will benefit from low or no fees, charges, lower interest rates and favourable terms for credit.

A general breakdown in credit rating scores can be seen below. Please note that this is a guideline to credit rating definitions only:

750> Score – This means an ‘excellent’ credit rating. The most favourable credit will be obtained from people in this credit score range;
680 to 749 – Refers to the ‘good’ credit risk category. Average credit terms will be awarded here for standard loans etc;
620 to 679 – Applications may be declined depending on the lender in question. Mostly credit will be awarded but not at particularly favourable rates;
570 to 619 – This score is ‘below average’ and higher credit terms are offered. Additionally this bracket has a higher default number than all of the scores above;
500 to 569 – This bracket refers to people with ‘poor’ credit. A poor credit history means high interest credit or failed applications for better rate agreements;
<499 – This credit score bracket attracts the poorest credit terms and has the lowest number of defaults across all scores. Interest will be very high however, gaining new credit at this level is the only way to improve credit history and rise to the higher levels.

The above shows various stages of a person’s potential credit rating. As already mentioned these scales can vary between lender, credit bureau and other organisations around the world.

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