There are six main credit score levels. The Fair Isaac Corporation is the largest producer of credit accounts, in accordance with, and a person’s FICO score is what most lenders use when taking the final decision on a loan. In terms of credit we talk about credit score ranges. Credit score levels affect the probability of obtaining a loan or credit card and the interest rate comes with a credit card or loan.
Credit ratings range and levels
– The best credit score levels are generally considered ranging from 760 to 850. Since credit scores compared to the ranges of scores and nonspecific, a FICO score of 760 is essentially the same as 850 and get the same rate as a score of 850. A score of 850 is more a status symbol than anything else. People with the best credit scores level qualify for the best interest rates and most often do benefit from “special” interest of 0.0 percent for car loans.
– The credit scores level two range from 700-759. A FICO score of around second level is still considered a very good credit. Consumers with credit scores of level two will normally receive an interest rate which is a notch below the highest rate. Anyone with a credit score of level two should have no difficulty qualifying for loans or credit cards.
– Level three of credit scores range from 660-699. Have a drop in credit score around 660 to 699/2 are indicative of good credit. Level three FICO scores typically have no problem qualifying for loans or credit cards, but will not get the best interest rates.
– Scores ranging from 620 to 659 are considered the four levels of credit scores, also known as “average” credit. As previous levels, credit scores level four are often eligible for some loans and credit cards, but financial institutions have a much longer and deeper into the financial history of the person.
– A credit score between 580 and 619 is placed in the level five of a person’s credit rating. People with a credit score between 580 and 619 are considered “high risk” to lenders. Loan eligibility is difficult to rank at the level five, and many lenders require a co-signer or collateral before approving a loan for someone who has a credit score of level five. Interest rates will also jump dramatically for anyone considered high risk. A person with a credit score of level five can expect to pay at least two percentage points above the average rate.
– Finally the level six is the lowest level that everyone is entitled to a mortgage rate. Credit ratings of level six range from 500 to 579. People with a credit score of level six will qualify the interest rates lower, if you qualify for nothing. Most banks require collateral or a co-signer before approving a loan.