Exactly what does my credit rating mean


Your credit rating is really a three-digit number that covers all the details on your credit score into one tidy number. The result is you around for the entire existence, its value upgrading and lower based on what’s happening inside your financial existence.

This three-digit score passes two different names, FICO or VantageScore. The FICO score is known as after the organization who invented this three-digit scoring system within the mid-1980s, Fair Isaac, Corporation. Most financiers make use of the FICO scoring system.

More lately, the 3 major credit rating agencies produced their very own scoring system, known as the VantageScore, designed to make a more consistent score across the 3 credit rating agencies. (Each credit rating agency collects different financial info on you, and for that reason, reports another credit rating.)

What exactly will a score mean? What’s a favorable credit record? Or perhaps a bad one?


Having a VantageScore, you are able to determine what sort of rate and terms you’d be eligible for a. The VantageScore range is 501–990, with an assigned letter grade.

A: 901–990 (Super Prime lenders offer their finest rates and terms)
B: 801–900 (Prime Plus lenders offer good rates and terms)
C: 701–800 (Prime lenders offer reasonable rates and terms)
D: 601–700 (Non-Prime lenders offer less favorable rates and terms)
F: 501–600 (High-risk lenders tend not to offer credit)

FICO Score

Having a FICO Score, what sort of rates and terms you’d be eligible for a isn’t defined. The FICO score range is 300–850. While there’s no obvious symbol of exactly what a bad or good score is, stop think about a score of 640–680 the dividing point between negative and positive scores—the time above you’d improve rates and terms the point where below you’d worsen rates and terms.

The VantageScore When compared to FICO Score

What are the similarities and variations backward and forward scores? Since the VantageScore and FICO Score use different scoring systems, a VantageScore of say, 650 (considered “non-prime”) doesn’t equal a FICO Score of 650 (where some lenders might take into account that a “prime” score).

If you wish to assess whether you’d qualify for a financial loan before you decide to really make an application for it, you’ll wish to assess your credit through the same credit rating your loan provider uses. Just ask your loan provider whether it uses VantageScore or FICO.


Both VantageScore and FICO seem to place high importance on:

  • Payment history: whether bills are compensated promptly.
  • New credit queries: how frequently you request new credit for, say, a charge card, a home loan, or a car loan.


Vantage Score seems to highlight:

  • Credit utilization: the amount of your available credit you utilize.

FICO seems to highlight:

  • Period of credit rating: that number you have been using credit.
  • Kinds of credit you utilize: charge card, home loan, car loan, for instance.


What does my credit score mean?

Resourse: http://pacer.org/publications/options/what-you-need-to-know/