Though almost every one may have heard about the credit score range, not many are interested in finding out their own credit score scale rating. Most people have no idea if their score will be evaluated as good or bad. Knowing the mechanisms of a credit score scale and how it affects your credit status is very important, especially if you happen to deal regularly with credit transactions such as credit cards, loans, mortgages etc. Read on to find more about simplified credit score scale information to enhance your awareness of the subject.

The Credit Score Scale

The credit score scale begins at 300 and reaches a high at 850. Your credit score will be 300 if you have zero credit history, no recorded income or not have paid a single invoice in your entire life. In the opposite scenario, if you have perfect credit history and paid all bills on time you would achieve the ultimate credit score of 850. In reality, a credit score will oscillate between the two extremes depending on how you have performed in your credit transactions in the past. If you have continued to settle debts within decent times bearing in mind both financial and moral obligations and your score is still less than 850, don’t start fidgeting as an average good credit score is considered at level 690 or above in the credit score scale.

Lenders perceive the impracticalities involved in attaining a perfect 850 due to prevailing economic and financial trends in the global economy. Therefore, if you record a score of 720 or above on the credit score scale it means you enjoy the best terms and facilities in all your credit transactions such as low interest rates, low premium and down payments etc. A little lower on the FICO scale is a score ranging from 680 to 720, which will also impress many credit facilities as it will be an indication of your credit worthiness.

A Bad Credit Score Scale

The red light starts indicating at any point further down the credit score scale. If a score is in a bracket of 630 – 680, you might still be considered as credit worthy but the terms will not be as favorable as in a higher level. Which means you will be required to put in hefty down payments, higher premiums and interest rates on your credit facilities. Now if you have seriously defaulted in your credit obligations in the past, your credit score will be poor and a score that falls below 630 will act as warning for your lenders making it extremely difficult to procure any credit facility. If this is the case, attend to credit repair actions by obtaining your credit reports from the respective bureaus and check for any errors requiring dispute actions. Every few points added to push your position higher on the credit score scale is valuable and will make you closer towards the point of perfection.