What is considered to be "bad" credit?

A:

The answer to this question can vary somewhat depending upon who you ask or the type of credit you are seeking.  FICO scores range from 300 to 850, but where you fall on that continuum can make a big difference on what kind of interest rate you will pay or whether you will get credit at all!  Here is where the scores tend to fall on the scale:

• 720 to 850 are considered good credit scores
• 660 to 720 are considered average credit scores, although many consider 620 to be the low end of this range
• 300 to 660 is considered a bad credit score

These ranges can also change with the economy, as lenders tend to have higher standards when it comes to defining "good credit."  No matter who you talk to, a score under 600 is seen to be bad credit, and anything under 620 is considered "sub-prime."  Your goal should be to improve your score to over 700, ideally to the 720 - 760 range.  If you need to improve your score, feel free to contact my office for a consultation to discuss your options.

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